We are absolutely in a stock market bubble: corporate equity valuations now higher than peak reached in 2007. Crestmont P/E of 26.3 is 90 percent above its average of 13.9.
Once again the stock market is in full bubble mode. The internet chat forums are full of people pumping up stocks and you also have penny stocks surging in light of people looking for the next free lunch. The stock market is a poor indicator of the overall economy but it does show how those […]
The chasm between the real economy and stock market: Baltic Dry Index down 60 percent and CNBC viewership near record lows. Where is the wealth in the US?
There is a continuing divide between the stock market and what is happening in the US economy. Many of the S&P 500 companies derive a large portion of their profits from growth abroad and many companies have increased their bottom-line by slashing wages, hours, and benefits domestically. Not exactly a plus for working and middle […]
Crony capitalism and the cult of borrowing: As the banking sector is fully bailed out, Americans push aside history and begin to leverage into debt to compensate for stagnant wages.
Banking should operate as a utility by providing businesses and consumers a source of funds for projects that will add real growth in the real economy. Unfortunately, the current banking system favors speculation and banking for the sake of banking. It also favors creating a non-working class that merely lives off of speculation and their […]
Stock market flashing red at an overvaluation of 68 percent: Looking at Crestmont, Cyclical, Q Ratio, and S&P Regression all suggest market is in for an upcoming correction.
The stock market continues to make record highs even though profits do not warrant current valuations. Looking at four standard valuation models we find that the stock market is highly overvalued relative to earnings. For most Americans with little stock ownership, this is merely a sideshow as to what is unfolding in the real economy. […]
US household debt nearly twice as high as annual wages and salaries: Inflating the consumer debt bubble with student loans and auto debt.
The latest consumer credit report surprised to the upside. What was the surprise? Americans are back to borrowing money they don’t have. Are they borrowing for investing or possibly purchasing a modest home? No. The latest data shows that Americans are once again going deep into student debt and auto debt. This is actually worse […]
The impending retirement crisis: Pushing the financial constraints of an economy where many will rely on Social Security for the bulk of their income on the backs of a growing young low wage workforce.
There is a looming retirement crisis on the horizon. Most Americans are ill prepared for a long-term retirement. Back in the early 1980s, over 60 percent of American workers had access to some sort of pension plan. Today, that number is less than 10 percent. Planning for the future is challenging because it takes discipline, […]
Too broke to leave home even at 35 years of age: Over 30 percent of young adults under the age of 35 living at home. Home ownership rate of young adults continues to plummet.
Young Americans are so broke, they can’t leave home. That might sound like the line of a really bad joke but this is the unfortunate situation in our economy. Many young Americans are saddled with mind numbing levels of student debt. Younger Americans are carrying the heavy burden of the $1.2 trillion in student debt […]