Global Debt Time Bomb explodes soon

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Stercutus
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Re: Global Debt Time Bomb explodes soon

Post by Stercutus » Thu May 30, 2019 2:04 am

Dow is up 10% for the year and the sky is falling again?
These days of dust
Which we've known
Will blow away with this new Son

But I'll kneel down wait for now
And I'll kneel down
Know my ground

MPMalloy
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Re: Global Debt Time Bomb explodes soon

Post by MPMalloy » Thu May 30, 2019 6:25 pm

Stercutus wrote:
Thu May 30, 2019 2:04 am
Dow is up 10% for the year and the sky is falling again?
I've been watching Bloomberg & CNBC. IMO, everybody's trying to cover all the bases at once. It looks like a lot of who shot john writ Econ & Finance.

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Re: Global Debt Time Bomb explodes soon

Post by absinthe beginner » Thu May 30, 2019 6:49 pm

The only thing propping up these Ponzi markets is central bank "stimulus" and corporate buy-backs. When those stop, it's Game Over.

https://www.bloomberg.com/news/articles ... ank-stress

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Re: Global Debt Time Bomb explodes soon

Post by MPMalloy » Thu May 30, 2019 9:51 pm

A Timeless Classic:


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Re: Global Debt Time Bomb explodes soon

Post by raptor » Fri May 31, 2019 3:03 pm

absinthe beginner wrote:
Thu May 30, 2019 6:49 pm
The only thing propping up these Ponzi markets is central bank "stimulus" and corporate buy-backs. When those stop, it's Game Over.

https://www.bloomberg.com/news/articles ... ank-stress
There is more at work than stimulus and buy backs.

Granted in some cases the valuations are steep in terms of P/E ratios (yes, you FANG stocks I am talking about you too) many are not that high on their P/E curves.
In english?
Many stocks are valued at a high price to higher earnings and a generally good health. Stock prices should and generally do follow anticipated earnings.

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Re: Global Debt Time Bomb explodes soon

Post by absinthe beginner » Sun Jun 02, 2019 4:29 pm

More "collapse" warnings. They seem to be proliferating.

https://www.zerohedge.com/news/2019-06-02/collapse

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Re: Global Debt Time Bomb explodes soon

Post by Stercutus » Sun Jun 02, 2019 11:23 pm

raptor wrote:
Fri May 31, 2019 3:03 pm
absinthe beginner wrote:
Thu May 30, 2019 6:49 pm
The only thing propping up these Ponzi markets is central bank "stimulus" and corporate buy-backs. When those stop, it's Game Over.

https://www.bloomberg.com/news/articles ... ank-stress
There is more at work than stimulus and buy backs.

Granted in some cases the valuations are steep in terms of P/E ratios (yes, you FANG stocks I am talking about you too) many are not that high on their P/E curves.
In english?
Many stocks are valued at a high price to higher earnings and a generally good health. Stock prices should and generally do follow anticipated earnings.
I'm going to have to agree. P/E ratios are not always definitive, especially with new stocks but with the old blue chips they tend to be accurate. The market is over priced and there will likely be a haircut coming.
These days of dust
Which we've known
Will blow away with this new Son

But I'll kneel down wait for now
And I'll kneel down
Know my ground

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raptor
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Re: Global Debt Time Bomb explodes soon

Post by raptor » Mon Jun 03, 2019 11:02 am

Stercutus wrote:
Sun Jun 02, 2019 11:23 pm
raptor wrote:
Fri May 31, 2019 3:03 pm
absinthe beginner wrote:
Thu May 30, 2019 6:49 pm
The only thing propping up these Ponzi markets is central bank "stimulus" and corporate buy-backs. When those stop, it's Game Over.

https://www.bloomberg.com/news/articles ... ank-stress
There is more at work than stimulus and buy backs.

Granted in some cases the valuations are steep in terms of P/E ratios (yes, you FANG stocks I am talking about you too) many are not that high on their P/E curves.
In english?
Many stocks are valued at a high price to higher earnings and a generally good health. Stock prices should and generally do follow anticipated earnings.
I'm going to have to agree. P/E ratios are not always definitive, especially with new stocks but with the old blue chips they tend to be accurate. The market is over priced and there will likely be a haircut coming.
P/E ratios are indeed not a definitive measure. There are many reason for this: not the least of which is that not all "earnings" are equal, recurring or even distributable.

Still when a company's earnings are up 25% and so is it's stock price, that is logical. That however, DOES NOT mean that the price will not decline or that it is a good time to buy the stock. Simply that there is a rational justification for a higher price so long as the earnings are likely to continue at that level.

As noted many newer and tech companies especially seem to operate at silly P/E ratios including my favorite a negative PE ratio.
The market in this case is assuming they will grow their earnings to the price being paid for the stock. In some cases it works (i.e. FB's PE ratio is about the same and MSFT) in others like Tesla/Uber/Lyft...well the jury is still out.

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Re: Global Debt Time Bomb explodes soon

Post by absinthe beginner » Tue Jul 09, 2019 9:45 pm

(EPIC). The Baggy Underwear Clown Show Begins Tomorrow... By Gregory Mannarino

https://www.youtube.com/watch?v=9B6uhavw4fs&t=0s

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