David Zanoni

Due for a Correction? Market Is Already Priced for Grim Future

I like your point about Health Care - a double dose of stimulus per year for eternity. However, how high will our taxes go?

To the author: good analysis. The S&P PE ratio of over 100 that people are arguing on here is a bogus number. Just look at the S&P of strong companies like: JNJ, APPL, WMT, MCD, PG, etc. - their PEs are all under 100 & many are under 20. I think if we average 3 - 4% GDP growth, the market will continue to rise - let's just hope that we do get that growth.

On Aug 31 09:23 PM E Nuff Sed wrote:

> I agree with most of what you are saying except your politics. "Like
> the market, I was blindsided by the dreadful selloff that occurred
> from mid-February to through early March. I think that selling climax
> was the market's way of expressing its horror at the degree to which
> fiscal policies had suddenly shifted to the left: a massive increase
> in so-called "stimulus spending" threatened a similarly massive increase
> in future tax burdens, not to mention a gargantuan increase in the
> public debt."
>
> The US currently spends 16% of its GDP on Healthcare. Assuming it
> adopts the Canadian model of universal healthcare it would spend
> 10% of GDP. The savings of 6% is about 1 Trillion dollars. This
> would amount to a double dose of stimulus per year for eternity.
>
>
> Half of Personal bankruptcies in the US are due to health care costs
> - something unheard off in the rest of the western world. This takes
> a terrible cost out of the economy.
>
> I like your thoughts as a economist but your politics need some work.
> It is not consistent. There are many things the government does
> better than the private sector - healthcare, defense, primary education,
> public infrastructure, law and order being the primary examples.