best guages of wealth creation are:
- savings, investment in capital equipmt, intellectual property
(all that produces cash flow)
what happened in 1950's ?
end of WW2, expansion and reconstruction
the decades with declining interest rates saw big growth
e.g. 1990's
the decades with rising interest rates saw low growth
e.g. 1970's
going forward, the keys are:
- earnings growth potential, available credit, capex spending, consumer spending, effective saving, prudent corporate accumulation of cash,
and the granddaddy -- declining dollar
the key for govt: allowing the corrections to occur
for 20 years we have confused expanded credit with wealth
and confused legal tender with money
be careful out there, so many pitfalls
I have noticed a clear trend change in the press/media
BIG SUSPICION OF ECONOMISTS, WITH DISCREDITING IN PROGRESS
they have been wrong for so long, costing investors money
yup, the Dow/S&P is now about to fail at the Head & Shoulder neckline
corresponds to Dow 8500-8700
I see a quick stairstep down to Dow 4000, a dedicated decline
I remain, A Jackass |
