VALUATIONS? The standard fundamental gauges clearly show that the stock markets are overvalued. For example: The market’s price to sales ratio is now 40% above the long term average high, that statistic indicates that if the total gross sales of all the S&P companies is compared to the stock market value; it is too high, not sustainable and it will eventually correct….…. EARNINGS…The price earning’s ratio for the S&P 500 is currently 23 times earnings…the long term average has been 16 times…so merely returning to the normal standard would be harsh…. We expect a decline of 30% to 40%! LACK OF LIQUIDITY….the stock markets offer limited liquidity. Getting “in and out” of positions (buying and selling) is often quite difficult for many stocks. THE VOLUME …. Few people understand that approximately 90% of the stock market volume is institutional volume. That is not to say that the ownership is 90% owned by traders but of the daily trading volume… INTEREST RATES ….They are artificially low and do not reflect the true cost of borrowing money and inflation. This is central bank engineered manipulation which is designed to keep the world economy from falling off a cliff. High interest rates would kill the stock market and lead into a long painful bear market. Rising rates would also badly damage the real estate market. OIL RISK… Trump made the US the major oil producer and helped keep world fuel prices low. But today the administration’s completely moronic decision to limit exploration and […]