Is The Market Cheap?
Zerohedge has a breakdown (and a nice chart by JP Morgan, which is featured above) of the earnings of the market versus the market highs of the last several years. The quick article notes that revenues and not profit margins are what is needed to drive growth at the current level, however, revenues are driven by GDP growth, which has been lacking.
The Stock Market Is On Shaky Ground
With the fiscal cliff averted and sequester’s effects yet to be realized, the market’s rally has gone on unabated. However, this rally may be short-lived. This article over at Business Insider provides a quick overview of the market and why investors should be wary.
Gold Not ‘Antifragile’ Enough for ‘Black Swan’ Author
Taleb likens the US economy to the brush fires of the western United States, suppressing small fires which naturally weed out the dry undergrowth, but sets the stage for a firestorm. Many seek to hedge the potential of a firestorm within the economy by investing in gold, but it does not inherently do well during catastrophic financial collapse.
Cyprus Still in Crisis as Monday Deadline Approaches
The legislators in Cyprus voted down the insidious deposit tax, but the deadline to develop a way out of their financial struggles is near at hand. Alternatives include, taxing only “wealthy” bank accounts, a restructuring of the banking system, or even Vladimir Putin coming in and “saving the day.” (I shudder to think of the long term consequences of Putin gaining a foothold in the Eurozone.)
Older Households Loading Up on Debt
Household debt among those 65 and older is increasing. Older Americans are less likely to own their home outright, maintaining mortgages well into retirement.
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