The S&P has reached a record high level. Some has tried to compare this peak to the 2000 and 2007 stock market tops. However, some like Broker Josh Brown remind investors that the comparison stops with a nominal price. Stocks are much reasonably priced than they were before the 2 crashes of the markets.
The Euro crisis will escalate again, says Felix Zulauf. Swiss money manager is preparing for a collapse of the stock market. But even greater is his concern that angry citizens could take it to the streets.
The founder of Hayman Capital Kyle Bass is of the opinion that central banks enable the fiscal profligacy, removing the widely-known policemen from the highway of the bond market. The balances and checks of what he calls “normal” interest rates will be eliminated altogether, if the central banks purchase everything of bond issuance which is used for financing the fiscal deficits. This phenomenon does absolutely nothing to make the body politic take its foot of the accelerator. His biggest fear is that this tendency of printing and spending money will go on and it will push inflation to manifest itself.
Not so long ago Kyle Bass has said that now is probably the hardest time to invest, also adding that he is of the opinion that Harry Reid and Nancy Pelosi do want the United States to go over the fiscal cliff because of political reasons.