Thursday, May 12, 2016

Milton Berg: Prepare Yourself For A 30 Year Bear Market In Stocks & Bonds

"Well, it is not unheard of in history. As you know there was a bear market in bonds lasting maybe forty years that began in the mid-40's and ended in 1980. We've had a twenty, twenty five year bear market in Japan going back to 1989. We're the most overvalued market in history, there's more leverage throughout the world than there's ever been in history, central banks have lost all their ammunition, basically because there is so much credit outstanding throughout the world. It's not unheard of to have a long-term bear market. There will be a lot of money to be made both on the downside and the upside within the bear market."

"World-wide, looking at all the equity markets we're definitely at the most over-valued. P/E ratios on the New York Stock Exchange are just above the P/E ratio at the trough of 2009, the median P/E ratio. Markets are way over valued. If you look at where yields were thirty, forty years ago when you got five, six, seven percent and now you're getting one percent, one and a half percent yield, way over valued."

Tuesday, May 10, 2016

Donald Trump's Shocking Honesty Regarding America's Coming Debt Restructuring

Trump had a moment this week when he acknowledged the U.S. cannot ever pay off the debt, and the country would move quickly toward insolvency if interest rates rose just a few percentage points. This has been a consistent topic on this site over the past few years, but it is unprecedented for a Presidential candidate to be so honest about the United States' pending bankruptcy and/or debt renegotiation.

Trump has quickly backtracked off the comments and later said America will "print the money" needed should interest rates rise. This calmed everyone back down, which is insane because the latter solution is far worse for the country over the long term. Please note Hillary's plan is also to borrow and print money, so this is not a targeted attack on Trump.

More from Peter Schiff on this topic. Part one:

Part two:

For more see: The Fed's Sleight Of Hand Through Stealth QE