Friday, December 7, 2018

this article will show in several clear charts and accompanying text, why we're headed towards the largest financial disaster you might imagine;


What happens when asset valuations rise well in excess of income?  Generally bubbles form and then burst.  With that in mind…
Wilshire 5000 (red line representing all publicly traded US equities), disposable personal income (dark blue line), real disposable personal income (light blue line), and federal funds rate (black dashed line).  During each bubble, assets have appreciated far faster than incomes to support those higher asset prices.   Lower interest rates and higher leverage have been used to incent greater quantities of debt…to be paid in the future.  All data is through Q3 but not inclusive of the volatility seen thus far in Q4............http://www.investmentwatchblog.com/the-canary-in-the-coal-mine-has-died/

No comments:

Post a Comment