The Bubble Is Inflating? (May 20, 2013)

. . .

1         “I am a financial genius; you are a financial genius; he is a financial genius; she is a financial genius.”

2         “We all are financial geniuses today.  But for how long.”

1       “Think 2000 – 2001.  Price–earnings ratios are still one of the most concrete touchstones.  The time-honored ratio expresses a timeless relationship between investment and return.  The ratios are akin to shotgun gauges.  Ten is tenable.  Twelve is desirable.  Sixteen is acceptable.  Twenty is workable.  Twenty Eight is tolerable.  However, Four Hundred Ten is unsustainable.  If you gauge it correctly, you might have a shot.  Yet today’s returns are getting unreasonable.”

2         “Treasury instruments are providing a paltry return on investment of about four hundred and fifty eight or worse.  That is not attractive and is not attracting money.  The stock market is the only game in town.”

1        “The players make us play it.  When will we do what we know we are all scheming to do and try to be the last fool out at the top.”

. . .

Bumper stickers of the week:

Financial genius on board

A skyscraper built on sand

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