Fabien Hug

U.S. Empire In Decline, Makes Way for China

Poor bloke. Tahiti is French and French women, they are something...


On Oct 25 10:35 AM Mad Hedge Fund Trader wrote:

> bdt The US is turning into Europe. Think high taxes, chronic high
> unemployment, more government involvement in everything, less innovation,
> and much lower growth, in exchange for a social safety net and better
> coffee. That is the message the markets told us by retreating to
> the 6,000 handle in March, levels not seen since 1996, and down 54%
> from the 2007 peak. Equity prices will shrink to multiples, in line
> with permanently lower long term growth rates of maybe 1%-2%, a shadow
> of the 5% rate seen for much of this decade. Hint: that’s a lot lower
> than here. Perhaps this is what mature economies are supposed to
> look like. If someone is holding a gun to your head and you must
> buy American stocks, only select names that get the bulk of their
> earnings from overseas. Microsoft (seekingalpha.com/symbo...),
> Intel (seekingalpha.com/symbo...), Oracle, (seekingalpha.com/symbo...),
> Cisco (seekingalpha.com/symbo...) all get 60%-70% of their
> profits from overseas, where up to 90% of the real economic growth
> will come from for the next decade. Commodity, agricultural companies,
> and their ETF’s also fit this picture. As for me, I think I’ll move
> to Tahiti and live off of coconuts and freshly speared fish, wearing
> only a loin cloth. Anything is better than becoming French.