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Jason Burack
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Investor, Entrepreneur, Financial Historian, Austrian School Economist, Investment Analyst, and Contrarian. Co-founded the investor education, financial education and consulting company, Wall St for Main St, LLC in 2009. I've taught beginners how to invest and also consulted for high net worth... More
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Jason Burack
  • Possible Crack Up Boom? Asset Bubbles Everywhere! 0 comments
    May 15, 2013 5:41 PM | about stocks: DIA, SPY

    This is a podcast we did calling out Wall St robots and Keynesians who think the Austrian School of Economics is for higher taxes. For free markets to work and for prices to clear, taxes on the private sector have to be drastically cut. Keynesians think Austrian School Economists or free market economists favor high tax austerity on the private sector, which could not be further from the truth. If government spending is drastically cut, taxes on the private sector have to be drastically cut for investors, entrepreneurs and small business to start growing the private sector again. Higher taxes on the private sector are not a good incentive for economic growth.

    The US economy is not recovering, except for certain sectors. However, without the aid of free money from Congress, the Fed, and other central banks many of these sectors like healthcare, banks, real estate, homebuilders, etc would not be "recovering."

    Asset bubbles in nearly every asset class but commodities are developing rapidly.

    Keynesians and the mainstream media keep repeating:

    1) there's no inflation (most of the inflation is in asset prices creating or re-inflating bubbles right now) and a lot of the inflation has been exported outside the G7 by countries running currency pegs

    2) the US economy is recovering (certain sectors are recovering and there is new technology sectors rapidly growing, but most of the sectors recovering are getting LOTS of free money still).

    3) the Fed can exit its entire balance sheet in 3-5 years. Who would buy the "assets" the fed is selling?

    I expect stocks to keep going higher although small and mid caps are not moving higher. Valuations on small caps are extremely low even the profitable ones with good growth potential. Market is not pricing in a lot of revenue growth for many companies despite the fact that revenue growth for many companies is very likely in the near future.

    Commodities market is the only asset class not in a bubble right now.

    Resource stock valuations are absurdly low and zero revenue growth is being priced in.


    Stocks: DIA, SPY
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