US Markets and the Disconnect From The Economy

April 28, 2020

Chris Temple joins me today to focus on the US markets compared to the underlying US economy and projections of how the economy will start back up. Some of the comments on the recent market strength are carried over to the oil stocks recently moving up as the oil price fades.

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    Apr 28, 2020 28:58 AM

    But is a temporary set back in P/E ratio totally relevant to the long-term worth of a company? Maybe, maybe not,; depends on how long “temporary” is.

    The other major factor to stock evaluations is relative interest rates. If interest rates might actually go negative, is it too dangerous to invest money there?

    The problem in investing in hard assets as a further option is liquidity.
    Thus to value stocks based on historic valuations may not be the best way to value the stock market, (Time will tell)
    I tend to believe in the resilience of the American people, AND BUSINESSES.
    (Especially when money is cheaply available.)

      Apr 28, 2020 28:08 PM

      Just a comment on the Energy trade.
      Prior to listening to this interview, I visited my friend who sells used cars.
      He had just received his Covid small business loan. He received 50,000.00 at 3.5% interest for thirty years.He promptly put that that money into VDE.
      Welcome to the Trump economy.

    Apr 29, 2020 29:43 AM

    Yeah the Orange man is being too optimistic. No it wasn’t the best economy ever however he inherited a huge mess. Lots of people figured trying to reign in China was crazy. Trump got China exactly right. Has ran the cleanest govt in history. One reason being spied on when he gores to the toilet. Weekend with Joe is a complete sell out and a complete loon