Today more than ever before we have more uncertainty, more danger, and more risk being taken. Governments have decided that they are going to intervene at record levels often helping out their friends, their colleagues, and the revolving door of business and government to ensure that their grip does not lighten up. Big changes have happened here in 2020, but we’ve only just begun.
Central Banks Say Need to Keep Spending Until Recovery From Virus – Bloomberg
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Smead: ‘Nightmare’ U.S. stock valuations driven by ‘young, dumb’ investors
U.S. equity valuations have become a “total nightmare” fueled by “young and dumb” investors, according to Cole Smead, president and portfolio manager at Smead Capital Management. At present, investors are paying 22 times forward earnings to purchase stocks on the S&P 500, 50% higher than the 10-year average valuations across the index.
Canada, home of North America’s biggest housing bubble risk, defies pandemic with price hikes across the country | Financial Post
Canada, home of North America’s biggest housing bubble risk, defies pandemic with price hikes across the country
Median home price expected to reach $693,000 by the end of the year, a 7 per cent increase from the end of 2019 Even a once-in-a-century pandemic isn’t enough to cool the Canadian housing market, with prices nationwide now forecast to end the year higher than where they started.
Real estate prices are about to drop 10%
The wholesale disruption of COVID-19 is taking a toll on the real estate market. A new survey suggests that offices will remain under capacity for months, retail and hospitality will continue to struggle, and, despite some increases in single-family home values, real estate across the board will see its value fall around 10% next year.
Bankrupt chains hand their keys to the lenders
Indeed, several companies that have filed for bankruptcy since the pandemic have ended up sold in credit bids. CraftWorks, the owner of Logan’s Roadhouse and Old Chicago that declared bankruptcy before the pandemic, was sold through a credit bid in May.
(17) Sven Henrich on Twitter:
“The bull case: Nothing matters.
Not debt, not growth, not earnings, not layoffs, not valuations, not forward multiples, not tax hikes.
Keep buying historic valuations because the magic money fairy will keep bailing us out.” / Twitter
The bull case: Nothing matters.Not debt, not growth, not earnings, not layoffs, not valuations, not forward multiples, not tax hikes.Keep buying historic valuations because the magic money fairy will keep bailing us out.
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The Money GPS is the most active, most informative channel in the financial world. Day after day, breaking down the data and making it easy to understand. This channel is not here to help build a portfolio, give stock picks, or financial advice. It’s simply data that is generally not found through conventional means.
We have watched the financial system go into levels of higher debt. More debt all around. There have been more accounts with margin in stocks. People are asking what are the best stocks to buy? and what tech stocks to buy in 2020?
The statements, views and opinions expressed in this column are solely those of the author and do not necessarily represent those of The Duran.