{"id":6619,"date":"2015-03-18T20:08:35","date_gmt":"2015-03-19T01:08:35","guid":{"rendered":"http:\/\/olduvai.ca\/?p=6619"},"modified":"2015-03-18T20:08:35","modified_gmt":"2015-03-19T01:08:35","slug":"lenin-was-right","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=6619","title":{"rendered":"Lenin Was Right \u2026"},"content":{"rendered":"

Lenin Was Right \u2026<\/a><\/h3>\n

Bear Markets Do Happen<\/strong><\/p>\n

Today\u2026 the second of the speech about the end of the world we recently gave at Doug Casey\u2019s La Estancia de Cafayate. (You can catch up on the\u00a0first part here<\/a>.) As Yogi Berra would say, America is going to come to a fork in the road\u2026 and it\u2019s going to take it.<\/p>\n

Right now, the Fed isn\u2019t as aggressive as the European Central Bank (which is set to pump \u20ac1.2 trillion into the financial markets by way of its QE program) or as innovative as the Bank of Japan (which is buying stock market funds as well as bonds by way of its QE).<\/p>\n

Valuations are at extreme highs on Wall Street. Take Warren Buffett\u2019s favorite measure \u2013 market cap to GDP. With an eight-month exception at the height of the dot-com boom (and you know what happened next), the value of all outstanding S&P 500 shares is the highest it has been relative to US GDP in the last 100 years.<\/p>\n

Meanwhile, Deutsche Bank is warning that S&P 500 earnings per share will be flat this year when compared with 2014. Retail sales are down about 9% on an annual basis over the past three months. And the US GDP has slowed to an annual rate of just over 1%\u2026 with the possibility of a surprise recession on the horizon. Besides, crashes and bear markets happen. This seems as good a time as any.<\/p>\n

\n

…click on the above link to read the rest of the article…<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Lenin Was Right \u2026 Bear Markets Do Happen Today\u2026 the second of the speech about the end of the world we recently gave at Doug Casey\u2019s La Estancia de Cafayate. (You can catch up on the\u00a0first part here.) As Yogi Berra would say, America is going to come to a fork in the road\u2026 and […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[4271,124,233,282,303,305,353,4270,661,662,696,860],"class_list":["post-6619","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bear-markets","tag-central-banks","tag-ecb","tag-european-central-bank","tag-fed","tag-federal-reserve","tag-gdp","tag-lenin","tag-qe","tag-quantitative-easing","tag-sp","tag-wall-street"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/6619","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6619"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/6619\/revisions"}],"predecessor-version":[{"id":6620,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/6619\/revisions\/6620"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6619"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6619"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6619"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}