Monday, May 16, 2016

“One Big Worldwide Bubble”: 
Cusp Of 30-Year Bear Market In Stocks & Bonds
Bloomberg interview with Milton Berg .. highly recommended by Mish Shedlock* as a must watch .. Berg’s view is on a 30-year bear market is on a “real inflation-adjusted basis, not a nominal basis” .. This the “most over-valued equity market in history, worldwide” …. not even a Mario Draghi “whatever it takes” action will help .. “It’s all one big worldwide bubble.” .. where does it all end? - Berg does not know: "Either deflation is going to accelerate, which is most likely, or they central banks will turn to real inflation, real printing, rather than just credit inflation. Either way it’s disastrous." .. Shedlock's view is a series of 5 to 15% declines over a number of years, with smaller & less frequent rallies - where every rally is a trap: "Such a slow bleed would be far more painful to pension plans counting on 8% annualized returns."
link here to the reference

1 comment:

Anonymous said...

He thinks the stock market is over valued. Try valuing a perpetual income stream at a negative interest rates and see what you get !