David Rosenborg doesn’t think we are in a secular bull market. This is either gonna make him more famous or gonna make him look pretty stupid:
- P/E Multiples were 8x, not 26x.
- Dividend yields were 6%, not sub-2%.
- The stock market was trading at a discount to book, not a 2x premium.
- Monetary policy was aimed at reducing money growth and inflation rates, not creating both as is the case now.
- Fiscal policy was aimed at reducing nondefense spending, not accelerating it.
- Deficits were peaking and coming down, not surging to 10%+ relative to GDP.
- Global trade barriers were being torn down; not erected.
- Deregulation back then was in; today it is all about re-regulation and government ownership.
- Union membership was on the way down; today it is back on the rise.
- The dollar was entering a Plaza Accord bull market, not a mercantilist bear market.
- Credit, household balance sheets and participation rates were expanding, not contracting.
- Tax rates, income, capital gains and dividends, were declining then; rising now.
Latest posts by Kyith (see all)
- Do You Have a Strong Insurance Protection Foundation? A FREE Havend E-book to Help Singaporeans(Plus Webinar Tonight) - March 28, 2024
- When Does High Quality and Low Quality Companies Perform Well? - March 27, 2024
- A Potential Rule of Thumb to Estimate CPF LIFE Standard Income with Our 65-Year-Old CPF RA Capital. - March 24, 2024