by Gary Gordon | Jun 24, 2020
Here in 2020, market participants are willingly paying an enormous premium for profits. In particular, corporate profitability is roughly the same as it was nine years ago. In Q2 of 2011, however, the S&P 500 traded around 1300, not 3000+. The speculative risk...
by Gary Gordon | Jun 22, 2020
Some analysts have resorted to rationalizing the stock bubble with never-before-seen valuation measures. To wit, if one ignores the past 12 months (Trailing P/E), and disregards projections for the next 12 months (Forward P/E), the 24-month forward...
by Gary Gordon | Jun 17, 2020
Today, Bloomberg News suggested that the CEO of wannabe electric truck maker, Nikola (NKLA), lied at a 2016 event about having a big-rig prototype that was “fully functional.” The stock bubble barely blinked. In fact, NKLA actually rose 1.8%. The company...
by Gary Gordon | Jun 15, 2020
Wall Street is unabashedly loony at the moment. Stocks remind me of Clark Griswold’s famous line in National Lampoon’s Vacation, “This is crazy, this is crazy, this is crazy.” In every previous recession, corporations reduced their leverage to shore up...
by Gary Gordon | Jun 12, 2020
In every recession, corporations reduce their leverage to shore up their balance sheets. Until now. US corporate debt is heading for 50% of GDP. That’s not merely a new record… it’s other-worldly. In 2000 as well as 2008, bubbly asset price excesses...
