Earnings are key. If you don't have earnings, you will go bankrupt, no matter how much money you borrow from the Fed. The only solution? The Fed should buy stocks.
We are clearly overvalued at this time with stock valuation to underlying assets levels of 2.
P/E ratios are now higher than before the stock market crash. That's because there are no earnings.
And it's not getting better.
The consequence is that all of this printed money will not be going into overvalued capital goods (stocks), but instead they will go into consumer goods (gold, food, oil, airplane tickets, ...)
However, the U.S. government has one last card left: 1.3 trillion dollars in cash.
We are clearly overvalued at this time with stock valuation to underlying assets levels of 2.
P/E ratios are now higher than before the stock market crash. That's because there are no earnings.
And it's not getting better.
The consequence is that all of this printed money will not be going into overvalued capital goods (stocks), but instead they will go into consumer goods (gold, food, oil, airplane tickets, ...)
However, the U.S. government has one last card left: 1.3 trillion dollars in cash.
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