Out of curiosity, do you ever vet your sources before you decide who to listen to and or/ post their content here?
I ask because a conclusion that we are "on the cusp" of another major economic downturn, sounds an awful lot like when he told us we were on the verge of a "devastating economic collapse" a full 3.5 years ago
You'd think at some point, after say the 30th time you went to bed sure the world would blow up that night, and you woke up the next morning to another day, you'd change your strategy, but no. Go figure.
Agreed - and its not like everything is hunky dory now. Its just that you cannot stay in full-on-hysterics-screaming-with-your-hair-on-fire mode forever.
This tone was warranted, and quite useful in 2008. It was even more useful if it was used in 2007. Still, if you use it every day, day in and day out for 3.5 years, how is that useful?
Its the chicken little paradox. Lets say history proves that the next kaboom moment is Oct 2021. If he sees it coming in 2020, how can he effectively "warn" anyone when he has been at level 10 hysterics nearly every single day from 2009-2020?
Lol! McDonald's hikes burger prices by 20% in Japan. This is what happens when their central bank pushes too far. McDonald burgers are used by economists to measure inflation. McDonald's focuses on price and works to keep their burgers from getting expensive. So they fight inflation and also their menu is uniform globally. Yet even McDonald's can't beat the bank of Japan.
History tells us that when the price of gold crashes, a recession almost always follows. History also tells us that when the price of oil crashes, a recession almost always follows. When both of those things happen, a significant economic downturn is virtually guaranteed. Just remember what happened back in 2008.
True, history (i.e., Fall of 2008) may be repeating itself in Spring 2013. HOWEVER, valuation or the P/E ratio (trailing 12 months) for the S&P 500 is currently (http://www.multpl.com/table?f=m) a lot lower than it was in late 2008.