Oh, and by the way, always giving glory to our Lord, Jesus Christ! He comes first. Always.
Could NOT agree with this more.
"The main thing that determines whether an overvalued market continues to advance, or drops like a rock instead, is whether investor psychology is inclined toward speculation or risk-aversion."
I'll talk about this issue in my soon-to-be-released investment course.
Remember, stock performance is based on three things and three things only... Earnings Growth + Dividend Yield +/- PE contraction or expansion.
PE contraction or expansion is based on the returns of risk free assets, Treasury Bills. As those returns increase, it makes one less desirous of taking risk for what could be sub-optimal stock returns, the CONTRACTING PE ratios. Will the contraction of PE ratios be overcome by DIvidend yields? Probably not.
So the thing that can save us would be earnings growth. Can you expect boisterous Earnings growth with a "green" energy agenda? Doubtfully.
Be cautious on your return projections!
Ed McQuarrie talks the REAL History of Stocks and Bond performance.
We're taking my son to his Introduction to Auburn event at Auburn University.
we'll see you next week though!
In the meantime, a white paper I'm reading.
"This study validates...that the implementation of (China's) Five Year Plan was followed by a significant production expansion in the encouraged sectors of China. This expansion crowds out production in the same sectors in the US, leading to significant drops in both employment and investments and a notable increase in plant closures."
But it's TRUMP that started the trade war, eh?
sorry folks gotta move all this mulch by this weekend.
WE're preparing for my son Cavan's high school graduation party. So, it's a BIT hectic here to make sure everything is in place...
If it was me, I'd grill burgers and sit on coolers full of water. But apparently I'm not in charge. Who knew?
