Market Quotes and Observations

11 Feb

Market Quotes and Observations

Here are just a few observations about the markets from others, some new comments worth being shared.

The first is about the stock market from analyst David Rosenberg, founder of Rosenberg Research and Associates:

“While I cannot pick the date, I can tell you that this turbocharged debt cycle will end miserably, not unlike 2008 and 2001. Don’t try to time the inevitable mean-reversion trade…. In nearly 11 years the S&P 500 has soared nearly fivefold to multiples (on earnings, sales and book value — take your pick) we have only seen twice in recent history.”

“… there really is no reason to wait for the herd to head for the exits.”

David Rosenberg

The next is from an account by the editor of the Strategic Trader newsletter, E.B. Tucker.  We think the headline on the story says it all:

“Investing In Gold: The Biggest Upside With the Smallest Risk.”

As we have commented frequently, long past is any likelihood of the US government getting its financial house in order.  The rubber band of federal debt will be stretched until it snaps.  And if the government needs to print money and shove it out helicopter doors when it can no longer borrow– an updated version of the German inflation of the1920’s – it will do so.  

Société Générale analyst Albert Edwards looks as the debt “spiraling out of control” and has a few words on the subject worth reading:

“Does anyone seriously believe that any democratically elected government would be willing to raise taxes or cut government spending and future pension/health benefits in a bid to delay the fiscal time bomb? Of course they wouldn’t! And any government that attempts to do so will be hounded from office by an indignant public armed with pitchforks and much else besides.”

And finally, we’re not saying it is exactly like the seven Biblical plagues, but blogger Michael Snyder rounds up a few of the things going on all at the same time that could pass as curses:

“Global weather patterns have gone completely nuts, large earthquakes are popping off like firecrackers, it looks like the plague of locusts in Africa could soon develop into the worst in modern history, and a massive plague of bats is severely terrorizing parts of Australia.  On top of all that, African Swine Fever is wiping out millions upon millions of pigs around the globe, the H1N1 Swine Flu is killing people in Taiwan, there have been H5N1 Bird Flu outbreaks in China and in India, and the H5N8 Bird Flu has made an appearance at a poultry facility in Saudi Arabia.  Of course the coronavirus outbreak which is causing people to literally drop dead in the streets in China is making more headlines than anything that I have mentioned so far.”