lorddarley

Is the Equities Party Over?

I don't think there is much sense to this "analysis."

The entire capitalization of the world's equity markets is only 50 trillion or so (as of 2007). Some of this is crap, so the stocks of quality companies, which are needed for pension funds and insurance company portfolios, can't be more than 30 trillion market cap.

Assuming a reasonable cap rate, you could buy all the world's quality stocks (theoretically) for $3 trillion or so a year. Do you really think stocks are undervalued?

Helping to finance this theoretical purchase is the labor and ambition of billions of people just getting started on the path to prosperity.

Stocks of the world's quality companies are a screaming, unbelievable buy if you can think past the next few quarters.

LordDarley