Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
By The Aleph Blog (Reporter)
Contributor profile | More stories
Story Views
Now:
Last hour:
Last 24 hours:
Total:

Touching the Sky

% of readers think this story is Fact. Add your two cents.


Picture Credit: Adam Y Zhang || What goes up… wait, we’re in orbit?!

What I posted after the close yesterday…

I don’t have much more to say. The next Z.1 report comes out in late September, but will only bring the data up to June 30th. I use a pair of adjustments to adjust the share of assets invested in risk assets (stocks) between releases. So far, the adjustments seem reliable as the interim estimates have been tracking the results from new releases.

Could the model be wrong? Sure. I don’t run into many professionals who endorse the asset share model. Part of that is the industry gets compensated off of assets under management. No one wants to forecast declining future revenue. No one wants to have clients move out of stocks, as the percentage fees from stocks are higher than bonds or cash.

Aside from that, the asset share model is a balance sheet model. Most analysts prefer income statement models, even though they work as well, because P/E ratios are more intuitive to market participants. The asset share model is not the only balance sheet model — the Q-ratio is also a balance sheet model.

Though interest rates are low, they are not negative. 10-year investment grade bonds are competitive against domestic stocks at this point. Even if you are losing against inflation, you are losing less against inflation than the market as a whole. Same for cash. I don’t think that there is no alternative. Here are the alternatives:

  • Investment grade bonds (market duration)
  • Cash
  • Value stocks
  • Cyclical stocks
  • Foreign stocks
  • Emerging market stocks and bonds

So consider the alternatives, and consider hedging. I can’t nuance this anymore, as we are in uncharted waters. We are touching the sky.



Source: https://alephblog.com/2021/08/17/touching-the-sky/


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.

Please Help Support BeforeitsNews by trying our Natural Health Products below!


Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST

Order by Phone at 888-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST

Order by Phone at 888-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST


Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen! 
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover -  Reduces Smart Meter radiation by 96%!  (See Video)

Immusist Beverage Concentrate - Proprietary blend, formulated to reduce inflammation while hydrating and oxygenating the cells.

Report abuse

    Comments

    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    MOST RECENT
    Load more ...

    SignUp

    Login

    Newsletter

    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.