Almost Laughable
In “‘The Death of Equities’… Again?” FT Alphaville ponders whether sentiment has reached the kinds of extremes that have historically marked major — secular — turning points:
Thursday’s FT declares “the end of a six-decade passion for equities”. Quite a claim.
Institutional investors, from pension funds to mutual funds sold directly to the public, have slashed holdings in the past decade. Stocks have not been so far out of favour for half a century. Many declare the “cult of the equity” dead.
The story may evoke a feeling of déjà vu for some. Especially those who read the August 13, 1979 edition of BusinessWeek, which famously also announced ‘the death of equities’.
Admittedly, it took another couple of years for the bear market to end, but what followed was one of the biggest bull markets in history.
As a long-time market-watcher, I am acutely aware of the fact that “the crowd” tends to get overly pessimistic at market bottoms (in fact, for those who accuse me of being a permabear, I would have them note my well-publicized calls for a trading rally in March 2009).
Still, the notion that share prices are at a turning point akin to what we saw in the early-1980s is almost laughable given that:
- Interest rates back then were at record highs, while they are near all-time lows now;
- Price-earnings ratios three decades ago were testing all-time lows and were half of what they are currently;
- Dividend yields were nearly three times as high thirty-odd years ago as they are today;
- Mutual fund cash levels in recent years are a fraction of what they were in the early-1980s;
- Share prices had essentially tread water for a decade-and-a-half prior to the stock market’s early-1980s lift-off, while the current malaise has not lasted nearly as long;
- Hardly anybody was calling for a major bull market just over three decades ago, while these days generational bottom-callers seem to be a dime a dozen.
As always, I could be wrong, but I really don’t think, to paraphrase a market cliche, this time is different.
Read more at Financial Armageddon
Source:
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world. Anyone can join. Anyone can contribute. Anyone can become informed about their world. "United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
LION'S MANE PRODUCT
Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules
Mushrooms are having a moment. One fabulous fungus in particular, lion’s mane, may help improve memory, depression and anxiety symptoms. They are also an excellent source of nutrients that show promise as a therapy for dementia, and other neurodegenerative diseases. If you’re living with anxiety or depression, you may be curious about all the therapy options out there — including the natural ones.Our Lion’s Mane WHOLE MIND Nootropic Blend has been formulated to utilize the potency of Lion’s mane but also include the benefits of four other Highly Beneficial Mushrooms. Synergistically, they work together to Build your health through improving cognitive function and immunity regardless of your age. Our Nootropic not only improves your Cognitive Function and Activates your Immune System, but it benefits growth of Essential Gut Flora, further enhancing your Vitality.
Our Formula includes: Lion’s Mane Mushrooms which Increase Brain Power through nerve growth, lessen anxiety, reduce depression, and improve concentration. Its an excellent adaptogen, promotes sleep and improves immunity. Shiitake Mushrooms which Fight cancer cells and infectious disease, boost the immune system, promotes brain function, and serves as a source of B vitamins. Maitake Mushrooms which regulate blood sugar levels of diabetics, reduce hypertension and boosts the immune system. Reishi Mushrooms which Fight inflammation, liver disease, fatigue, tumor growth and cancer. They Improve skin disorders and soothes digestive problems, stomach ulcers and leaky gut syndrome. Chaga Mushrooms which have anti-aging effects, boost immune function, improve stamina and athletic performance, even act as a natural aphrodisiac, fighting diabetes and improving liver function. Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules Today. Be 100% Satisfied or Receive a Full Money Back Guarantee. Order Yours Today by Following This Link.
| Visits: | 1,811,417,568 |
| Stories: | 8,652,689 |
Whistler Blowers, Insiders
