The very definition of “moral hazard.
The critical thing to remember is that “mean reversions” are a constant throughout history. Therefore, the greater the deviation in one direction, the greater the reversion will be.
The market is currently trading more than twice what the economy can generate in revenue growth for companies.
Valuations are terrible “market timing” indicators but are vastly crucial concerning future returns.
Investors are convinced there is “no risk” in the market because the Fed provided an “insurance policy” against loss.
The current deviation from the long-term exponential growth trend rivals every previous bubble in history.
And this time could be different. But, unfortunately, it just usually isn’t.
The Bespoke “irrational exuberance” indicator that subtracts “Valuation Confidence” from the “One Year Confidence” survey data well that reading exploded higher recently for both institutional and individual investors. The frenzied stock-buying activity that saved AMC Entertainment Holdings Inc. from bankruptcy is opening up a potential escape hatch for other troubled borrowers as well. More companies with steep financial challenges seek a lifeline from equity markets, eager to capitalize on the surge of interest in stock buying from nonprofessional investors.But equity markets now are more open to supporting troubled issuers, in large part because of risk-hungry individual investors eager to speculate, according to bankers and investors following the trend. 254 profitable companies issued secondary or add-on shares over the past 12 months. But 748 unprofitable companies did the same.
Historically, this “exuberance” is a classic hallmark of a market peak. This has led new investord to take the approach of “ Why waste time and energy educating myself if sheer ignorance pays off so easily?” For the time being, though, investors who think of themselves as wise will soon find out in hindsight how foolish they actually are. Im sticking to the saying
“Where ignorance is bliss, ‘tis folly to be wise.”
The market is currently trading more than twice what the economy can generate in revenue growth for companies.
Valuations are terrible “market timing” indicators but are vastly crucial concerning future returns.
Investors are convinced there is “no risk” in the market because the Fed provided an “insurance policy” against loss.
The current deviation from the long-term exponential growth trend rivals every previous bubble in history.
And this time could be different. But, unfortunately, it just usually isn’t.
The Bespoke “irrational exuberance” indicator that subtracts “Valuation Confidence” from the “One Year Confidence” survey data well that reading exploded higher recently for both institutional and individual investors. The frenzied stock-buying activity that saved AMC Entertainment Holdings Inc. from bankruptcy is opening up a potential escape hatch for other troubled borrowers as well. More companies with steep financial challenges seek a lifeline from equity markets, eager to capitalize on the surge of interest in stock buying from nonprofessional investors.But equity markets now are more open to supporting troubled issuers, in large part because of risk-hungry individual investors eager to speculate, according to bankers and investors following the trend. 254 profitable companies issued secondary or add-on shares over the past 12 months. But 748 unprofitable companies did the same.
Historically, this “exuberance” is a classic hallmark of a market peak. This has led new investord to take the approach of “ Why waste time and energy educating myself if sheer ignorance pays off so easily?” For the time being, though, investors who think of themselves as wise will soon find out in hindsight how foolish they actually are. Im sticking to the saying
“Where ignorance is bliss, ‘tis folly to be wise.”
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Machiavellis3rdEye : And this is making me feel better about starting my sell off last week. When the “reversion” comes I’ll be ready with some real cash flow.
Mcsnacks H Tupack OP Highlandergirl : He has been criticized for advocating practices of debatable legality perceived as "get rich quick" philosophy.Kiyosaki is the subject of a class action suit filed by people who attended his seminars and has been the subject of two investigative documentaries by CBC Canada and WTAE USA.Kiyosaki's company, Rich Global LLC, filed for bankruptcy in 2012.
Highlandergirl Mcsnacks H Tupack OP : thanks for the reply...kinda new and you are the only one that I follow and enjoy reading everything that you share on here.
Mcsnacks H Tupack OP Highlandergirl : It’s becoming a scary world out there. Never thought I’d see the day.