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Stockmarket blues

OK I missed the recent run up in stocks but I’m on the train now, waiting to get off when it runs off the rails.

Why?  Simple.

Earnings are flat – or down.  This “run up” is purely about increasing the P/E multiple across the world.  That means stocks are simply more expensive?  Why?  Because money printing and zero interest rates have allowed banks and speculators to still make money off 2% dividend yield.

But that can’t last forever.  20% returns on stocks when earnings are flat or growing at 2% ain’t gonna keep happening short of hyperinflation.

The stockmarket is like a boxer boxing Mike Tyson.  They dance around.  But eventually reality hits them on the head.  The world is Greece.  That’s the king hit.

I was right to recommend shorting Apple.  I will be right on stocks collapsing again medium term (in real terms, against gold).  When?  Probably next year.

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