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  • Dalio: No gas left in QE tank [View news story]
    I am a senior citizen who has studied investment and economics for five decades.
    Nov 12 03:07 PM | Likes Like |Link to Comment
  • Dalio: No gas left in QE tank [View news story]
    Stock price valuations are not determined by gross revenues. They are determined by earnings. Earnings are at an all-time high. PEs are not at all time highs. IBES 12-mo forward earnings for the S&P 500 are at $119 and the forward PE is 14.8x. It was double that in 1999-2000.

    The question is whether or not companies will be able to sustain these earnings. There is huge pent up demand in the economy. GDP growth over the last 4 years has been pathetic. Unemployment is high. We need a major change in fiscal policy to get this economy going up to speed. I would expect growth to remain somewhere between 1-3% until the current administration is replaced with a pro-growth president. If it is Hillary Clinton, let's hope her husband has influence with her, and if it is a Republical, let's hope it is a strong growth oriented individual.
    Nov 12 03:06 PM | 1 Like Like |Link to Comment
  • Did 2008 even happen? Deutsche Bank (DB -4.2%), with €2.28T in assets, has equity of just €51.9B - a leverage ratio of 44. As comparison, JPMorgan's (JPM) is about 18. Deutsche accounts for its sovereign debt holdings as "risk-free," thus bringing its "risk-weighted" capital ratio down to 13.8%. If it's all German paper, then fine, but how much is Italian? French?  [View news story]
    I don't know how much is non-German. Perhaps someone can enlighten us.
    Nov 22 08:02 AM | Likes Like |Link to Comment
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