@Tfmonkey I got bored at work and decided to have fun with charts mapping out how overvalued stocks are based solely on yields. The blue line is the s&p500, the green is VDC and the red bars is 5 year treasury yields
@Mike_Microwave @Tfmonkey Bored at work? Bad wage slave. Bad.
@ButtWorldsMan @Mike_Microwave Why the focus on VDC? What is it about Consumer Staples that interests you?
@Tfmonkey @ButtWorldsMan Yeah I could have clarified that: I picked since I've read people mention consumer staples companies as opposed to commodes futures; I wanted show that this index is also overvalued when solely looking at yields
@Mike_Microwave @ButtWorldsMan Yes, you are correct. Even so-called "value" stocks and defensive stocks are overvalued due to TINA (there is no alternative) thanks to the government manipulating commodities while crashing bonds due to their overspending.
@Tfmonkey @Mike_Microwave Would you please explain WHY the stocks here can be called overvalued?
@ButtWorldsMan @Mike_Microwave because stock prices are based on earnings (profits), which are going DOWN even as stock PRICE is going up due to TINA.
Eventually the bond market will break or the commodities market will, and then the stock market will crash down to Earth and many flips shall be had.
stocks are attractive when interest rates are low. The only thing holding stocks up is TINA due to government bullshit.
@Tfmonkey @Mike_Microwave makes sense, thanks. And the reason the interest rates rise and the P/E ratio dips below it is because that's a period of recession or high inflation, right?
@Tfmonkey @ButtWorldsMan @Mike_Microwave it's much easier to enforce a monetary system then make the slaves more productive.
@ButtWorldsMan @Mike_Microwave Yes, during a short-term debt cycle, the FED really only lowers rates during recession, so normies think that interest rates ALWAYS follow economic cycles, because they usually do.
The exception is the long-term debt cycle or a monetary reset, or simply stagflation. This is when the government is in too much debt and has to reset the monetary system.
This is when you want "real assets", government manipulation notwithstanding.