Friday, August 12, 2016

Preserving Wealth Will Become
The Prime Focus For Investors
Investing In Times Of Financial Repression
Martin Armstrong points out what happened to earnings after the Great Depression, for those who think value investing is applicable to today's investment environment .. "People are uncertain about the future so they are willing to park money with ZERO return. This proves that 'value investing' is just like everything else. Sometimes it works, and sometimes it does not. EVERYTHING is cyclical. There is a time to buy and a time to sell .. The trend where people hoard cash can be seen in the trading volume of the S&P 500 where the peak remains 1996. When confidence shifts and people wake up and say, 'Oh shit!' you will see things go crazy like never before. There is no panacea for value investing based upon PE Ratios and 'value,' for there comes a time when people are scared of the future and want to park. Anyone suggesting differently is either fooling themselves or trying to fool you. Piling into the assets to preserve capital will become the name of the game."
LINK HERE to the commentary

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