For traders, start deploying your shorts at many a juicy target.
The valuations are through the roof.
“Valuations are (-) 50% from last year and markets up (+) 55% from March lows?”
From last year this time S&P and DOW are down around 20%.
They’re up nearly 60% from March lows on expectation of a V recovery back to bubble.
You have to understand that since bubble unemployment has doubled.
Moreover, zombie banks have curtailed lending to a ghost of the previous bubble.
The highs that you may be referencing were on bubble credit.
Home values which drove the last bubble continue to decline.
That was the bulk of consumer wealth bubble which drove company earnings comprising two thirds of this economy.
Understanding this and you will realize that the market is going to pop.
The question is not IF.
We are definitely not done with the downturn.
Companies are trading back in the normal range.
Many, particularly techs, are actually at the high end of recent years.
You would never know that the recession is raging looking at the prices.
The downturn of the market is inevitable.
Government dollar propping up the market is not unlimited.
Witness the breaking of the greenback.
tarn
