Investment Rarities Incorporated
History |  Q & A  |  Endorsements  |  Portfolios  | Flatware | Gold Coins  |  Silver Coins  |  Contact |  Home

Products

Jim Cook

 

RUNAWAY SOCIAL SYMPATHY

Every once in a while I switch the TV channel from Fox to CNBC to see what the liberals are saying.  After listening awhile I get a deep sense of hopelessness and foreboding for our country.  The most important thing for the left is giving money to people.  They are happy to see the growth of food stamps, disability payments, housing subsidies, free healthcare and all the other welfare benefits.  They utterly fail to see the damage it is doing to the recipients.  Whole cities that once flourished have deteriorated into rotting eyesores populated with shambling hulks of chemically dependent drones.  These people are no longer employable.  They have become incompetent and helpless and the liberals can’t see that it’s their doing.

..Read More »

The Best of Jim Cook Archive

 

Condensed Articles

March 24, 2017

archive print

ITS A BUBBLE

By Fred Hickey

(condensed)

I’ve been investing for nearly four decades and I’ve experienced bubbles before. This market shows all the characteristics of a bubble. Extreme valuations – last month I noted that on a median stock basis the market’s price/sales ratio had hit a record high. Now with further sharp market gains in February, the total market is the highest valued in history (that’s saying something given how stupid valuations had become in 2000).

This current stock market has every bubble feature I can think of: an unjustified (and relentless) spike in prices, ridiculous valuations, extreme bullish sentiment, irrational exuberance, wide scale public involvement near the top, low (record) levels of cash held by fund managers, record amounts of margin debt, large amounts of monies pulled away from the responsible money managers and plenty to make investors believe they’re invincible (once again).

Underlying the stock euphoria is the notion that money printing works. It never has and never will. The trillions of dollars in money printing and artificially suppressed interest rates over the past several years led to massive increases in debts, deficits, malinvestments and asset prices. Trump has been left with (as he calls it) a “giant mess.” Trump is no magician and can’t erase these economic burdens with the wave of a wand and without any pain. Investors can’t stay in a state of denial forever.