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Strategies & Market Trends : ajtj's Post-Lobotomy Market Charts and Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: Sun Tzu who wrote (43779)	11/18/2021 1:18:01 PM
From: Real Man	Read Replies (1) \| Respond to of 97475

Some of us believe relative to interest rates valuations a.k.a.Ed Yardeni is crap. That includes me. That because the Fed fixes one variable and derivative markets fix the rest. The discussion of that is akin to discussion of free market for products in a communist society. As to that, we shall see how this ends. In a Commie society in 1988 Moscow stores were completely empty. How this ends in the US remains to be seen. Why can’t I get that meat in a commie store when the price is fixed? How much would the price be when free market breaks it? From personal experience, divide the currency by 10000 to 100,000,000,000,000 to unlimited because of structural problems with the economy this creates. Even when the market is allowed to set the price for meat, it can take a decade for the economy to respond and prices keep rising. For Yardeni fans, a question: is it normal for someone to lend money at risk of default and for a guaranteed loss of principal? A free market? Perhaps, now that we have crypto people will leave US currency for Fed and banks to destroy. The fundamental ratio of market cap to gdp includes relative size of the stock market to the size of the economy. In non-manipulated market it stays within a reasonable band. Today this metric exceeds all known American bubbles. I think it still has to beat 1989 Japan, so there. A quick googling of Buffett ratio will produce current number. It is not the only fundamental metric that is in a bubble territory, all of them including P/e, Schiller p/e, p/sales, etc. exceed known American past bubbles