Latest Hussman
Meanwhile, almost as if to put a time-stamp on the euphoria of the equity markets, IPO investors placed a $6 billion value on a video game app last week. Granted, IPO speculation is nowhere near what it was in the dot-com bubble, when one could issue an IPO worth more than the GDP of a small country even without any assets or operating history, as long as you called the company an “incubator.” Still, three-quarters of recent IPOs are companies with zero or negative earnings (the highest ratio since the 2000 bubble peak), and investors have long forgotten that neither positive earnings, rapid recent growth, or a seemingly “reasonable” price/earnings ratio are enough to properly value a long-lived security. As I warned at the 2000 and 2007 peaks, P/E multiples – taken at face value –implicitly assume that current earnings are representative of a very long-term stream of future cash flows. One can only imagine that recording artist Carl Douglas wishes he could have issued an IPO based his 1974 earnings from the song Kung Fu Fighting, or one-hit-wonder Lipps Inc. based on Q2 1980 revenues from their double-platinum release Funkytown.
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One can only imagine that recording artist Carl Douglas wishes he could have issued an IPO based his 1974 earnings from the song Kung Fu Fighting, or one-hit-wonder Lipps Inc. based on Q2 1980 revenues from their double-platinum release Funkytown.
Hahaha! Keep the faith!
Religious Construction Spending
Note that February was an especially brutal month for the true believers (down 7% month over month and 23% year over year).
Perhaps they know something we don't though? Does the spending include Ark building for the next Econopocalpyse? ;)
Mark,
Did you hear about this?:
http://finance.fortune.cnn.com/2014/03/19/myra-roth-retirement/
http://m.whitehouse.gov/the-press-office/2014/01/28/fact-sheet-opportunity-all-securing-dignified-retirement-all-americans
"This bond, which will be issued late this year, will carry the same rate as the G Fund in the federal employee Thrift Savings Plan. The G Fund is the equivalent of a money-market fund, but its yield, adjusted monthly, is based on the Treasury's average borrowing cost, rather than on short-term rates, as money funds are. Hence, the G Fund's March yield is 2.25%, about 200 times as high as today's typical Treasury money fund."
!!
Too bad it maxes out at $15,000!
CP
CP,
Thanks for sharing!
Too bad it maxes out at $15,000!
That might actually work for me. I've tucked away enough in long-term TIPS and I-Bonds that I don't have much left that I can deploy.
This is the first year (in recent years) that I'm having to choose between I-Bonds and EE-Bonds instead of just buying both. You've offered yet another option.
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