Goldsnow, lately I've been reading headlines like, "America: the New Tiger" and "America: World's New Engine of Economic Growth."
Give me a break.
Asia is experiencing what we experienced in the 1920's, when America really was the world's engine of economic growth. When youv'e got that sort of explosive growth, and financial assets only go up, the process feeds on itself, and asset valuations get out of a hand..
But, with 7%, 8% and somtimes even double digit GDB growth, at least a rational argument can be made that the Japanese and Asian Tiger stock markets should trade at a premium (though not the current premium). In the U.S. if the economy grows 3.5% it's in danger of "overheating."
It will be intersting to hear analysts try to juice a low-dividend, high PE, low earnings growth equity market. |
