Alphameister

Global Markets in Review: Risky Assets Disconnect from Fundamentals

Excellent article, mostly factual and well balanced between bullish and bearish opinion.

Regarding Eddy Elfenbein's bullish conclusions based on the % of GDP comprised by corporate profits, I expect that percentage to be under constant pressure as current political powers do their best to redistribute wealth and prefer to impose expensive corporate demands over direct taxation of middle-class America.

As for preferring "quality" investments, quality is in the eye of the investor. In my world, quality is determined less by size than by growth potential, balance-sheet cleanliness, return on equity, and low valuation multiples of earnings, cash flows, sales and book values. My search for quality has taken me primarilly to emerging markets, most notably China where economic strength seems to be accelerating (as your article well demonstrates).