Dinner tonight with somebody who thinks he’s a great market guru. Said it’s mad Dow passed 30,000 in current circumstances. I said no. Equity prices reflect future not past. 2021 will be a great rebound. I’m optimistic. UK stocks especially underpriced.
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Als antwoord op @afneil
Imo your market guru is right. Equity prices reflect the fact that interests rates are extremely low, capital has nowhere else to go for a decent return hence it goes to the stock market. The economy is supported by free money which won’t last. I prefer you to be right though.
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Als antwoord op @Foodman62 @afneil
It can go anywhere. Just holders capital have to accept low rates of return in most markets. Given inflation hardly exists then low returns are accepted and reflect higher equity prices. UK retailers are very oversold. Great returns to be had in oil and gas sector.
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Als antwoord op @JonMarcStanley @afneil
There’s zero to negative rates, inflation is just around the corner with money being printed. Businesses survive by government support which won’t last and well see bankruptcies early next year, we will also see high unemployment which will depress consumer spending.
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Als antwoord op @Foodman62 @afneil
Inflation has been around the corner for a decade. It's not happening any time soon.
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Als antwoord op @JonMarcStanley @afneil
Well, we disagree about that. The more money is printed and handed out the less value it will have. Let’s see what happens in 2021, if I’m wrong(which I prefer) I’ll stand corrected.
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Broad money supply is what matters here, the West has been trying to avoid deflationary spiral since the crash. Hence we've printed £600bln and very little inflation.
Het laden lijkt wat langer te duren.
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