The deteriorating U.S. economic outlook is of more concern than Europe to Goldman's Jim O'Neill....

The deteriorating U.S. economic outlook is of more concern than Europe to Goldman's Jim O'Neill. A year ago, the conventional wisdom said if contagion spread to Spain, it was game over. Well, it has, and here we are. "Does it ultimately matter to European equities whether the euro persists or not? ... (they're) so cheap that perhaps investors should ... turn off their computers and TV and disappear on vacation."

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Comments (3)
  • idkmybffjill
    , contributor
    Comments (1880) | Send Message
    except no REAL consequences have happened....contagion will hit when GREECE and SPAIN DEFAULT. Then, the fireworks start...
    25 Jun 2012, 09:24 AM Reply Like
  • Brian Bobbitt
    , contributor
    Comments (2079) | Send Message
    I think, if the real end game could be seen by the rest of you, as I saw it in my time machine, I can see why TPTB don't tell you the reality of the situation. I think if I were to tell you what Heaven is like, you would kill yourself to get there, and if I told you what is coming economically, you would do the same. UNLESS you are ready for the storm ahead. If e ONLY get inflation, we will be lucky. Thems that have the treasure [PM's] will be the lucky ones. If you can't buy silver, buy some copper rounds. One ounce, .9999 fine.
    Happy preparing.
    Capt. Brian
    The Lost Navigator
    25 Jun 2012, 02:12 PM Reply Like
    , contributor
    Comments (10765) | Send Message
    "Cheap" is a relative term. Compared to what? And when the "what" we compare to changes, then will they still be "cheap". Changes are coming and valuations will go down for many, many equities. Not all, but many. When you discount forward earnings by some number that is a reflection of current capital costs....and it changes to a higher number, the valuation must go down.
    28 Jun 2012, 12:47 AM Reply Like
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