Some facts for you wrote:
Ghost of Igloi wrote:
Point is pretty clear to me the marvelous stock and real asset gains are built on $4.2 Trillion of Fed QE, which will be reduced at a $50 Billion rate this fall. All the while corporations buy back their stocks to create the illusion on EPS growth. The other half of the working class that own very little stocks can’t keep up with rising housing costs. It is pretty clear that during this cycle wages have remain depressed.
I have made my comments clear multiple times about Hussman but you ignore the facts.
Interpret my comments any way you wish.
Time alone will prove which view is correct.
1. Stock buy backs increase EPS. It’s not an illusion.
2. Wage growth currently exceeds 3%.
3. Hussman is a terrible investor.
Rome retort to you:
1. It is a fact that highest level of stock buy backs come at the top of the economic cycle. The current stock buyback binge has been financed by corporate leverage. Stock buy backs create an illusion of earnings growth, it is in the math, ie. non-organic growth, which means the future is muted at best.
2. Wage growth is thw worst in decades.
3. Any investor or writer with a bearish view on the current market looks wrong and foolish. This too is true at market tops.