Three Reasons To Think Twice Before Investing In The Stock Market Now
Reason #1. Global equities (stock) prices primarily reflect sustained economic growth trends over the long-term, and there are few signs of sustained growth happening any time soon. The long-term stability and growth of the global economy cannot be sustained, so long as global debt is three times global gross domestic product (GDP), as it stands now. This is the result of decades of fiscal mismanagement, profligacy and just plain overspending on a global scale; it is also a problem that defies an easy or quick fix. In fact, notwithstanding the best intentions of the global economic order to grow out of and de-leverage to reduce that outlandish debt/GDP ratio over the past eight years, the only discernable effect of global quantitative easing and low (even negative) interest rates has been to reduce private debt by making it public, i.e. government/sovereign, debt. That makes global governments today more vulnerable than ever to bankruptcy and many observers believe that the next fina