Thursday, March 3, 2016

Currently today it is not the return ON your capital but the return OF your capital.

The economy continues to dance on the head of a pin between growth(what little there is) and possible recession.  Any misstep in the U.S. or world economy with an over inflated stock and bond market prices will come crashing down.

Expectation are for a 45% to 60% in stock price drop (S&P 500); this a run of the mill decline due to the absurd valuations.

The only two areas that have value are energy stocks and precious metals mining companies.  The remaining traditional stocks and bonds are way over valued.  Currently today it is not the return on your capital but the return OF your capital.

The Great Wait Continues.....

DYI

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