I keep pinching myself. Stock prices are much too high. Some real estate prices are ridiculous.
But there are eminent people like Ben Bernanke who say it’s all going to come crashing down. Investopedia headline:
For more of Bernanke’s rubbish, click here.
Today’s economy is not your father’s economy. In those days inflation reared its head. The Fed reigned the heat in by raising interest rates.
Economists — the guys who run the Fed — measured inflation by wages and the prices of things we bought, like food.
But that was before technology, automation, Mexican tomatoes, and Moore’s Law.
These days economist haven’t a clue — or more precisely even less of a clue.
In the old days there were Value stocks. Their P/Es would tell if their prices were low, high or about right.
Under value, all of today’s hot stocks — the ones you and I have been making boatloads of money in — are way overpriced.
But they keep going up.
Amazon has a P/E of 214. Amazon is my biggest holding. I own Salesforce (CRM). It has a P/E or 213. (Wow, a bargain.)
Netflix has a P/E of 244. My ancient friends spend their entire lives binge-watching Netflix series.
Square doesn’t have a P/E, a dividend or a dividend yield. It just keeps going up.
Go figure.
Tax reductions have loosened up money for buybacks. When a company buys back 10% of its stock, the other 90% get more value.
Looser regulations (and a gigantic national debt) may screw our children’s lives.
But for, now, Feel-good is good for the market. Snake oil is even better.
Thank you, President Trump for daily making me richer.
I probably don’t deserve it (that’s my Jewish guilt).
But I’m not complaining.
Buy more Paypal Adobe, CRM and Amazon.
Buddy Hackett tells the best doctor joke you ever heard
Kim Jong Un Offers to Host Peace Talks Between United States and Canada
SINGAPORE (The Borowitz Report)-One day before his summit with Donald J. Trump, the North Korean dictator, Kim Jong Un, has offered to host peace talks between the United States and Canada.
Speaking to reporters at his hotel in Singapore, Kim said that the rising tensions between the North American neighbors were posing an “intolerable threat to world peace.”
In addition to offering to host U.S.-Canada talks in Pyongyang, Kim urged the immediate creation of a demilitarized zone along the border separating the two hostile nations.
“In exchange for Canadian Mounties agreeing to stand down on their side of the border, the United States, in turn, would dismantle its nuclear weapons,” Kim said.
Although stating that “North Korea stands ready and willing to be an honest broker” in peace talks between the two countries, he urged Trump to dial back the “inflammatory rhetoric” that he aimed at Canadians over the weekend.
“Violent language and threats have no place in international diplomacy,” Kim said.
Harry Newton started today’s blog with the jokes. Then he realized it’s Our New Wonderful Insanity. Jokes and all.
The Fed is raising rates in a few minutes. It will intone on “inflation.” Good luck.
