Tag Archives: greater fools

China’s Shenzhen Stock Exchange: The Sky’s the Limit, Baby!

In the event you haven’t heard about the stock bubble currently inflating in China, please take a quick look at these two charts of the Shenzhen Composite: This second chart displays the Shenzhen’s price-earnings ratio (PE), a widely used measure … Continue reading

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Is This the Chart of a Healthy Stock Market?

If fundamentals like profits and sales no longer matter, then all that’s left is faith that central banks will never let stock markets fall ever again. Is this the chart of a healthy stock market? The consensus view is either … Continue reading

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The Central Problem with Central Banks: They Become the Greater Fools/Bag-Holders

Those who are confident the central banks can print unlimited money may find there are political and financial consequences to such extremes that cannot be foreseen. The central problem with central banks is their mandate now includes propping up all … Continue reading

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When the Herd Turns

  Once market participants realize the top is in and the only possible result from here on is a loss, the herd will turn and follow the leaders who are selling. A funny thing happens when the stock market herd … Continue reading

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2015: Now That the Fed Drove Everyone Into Ruinously Risky Bets….

It is impossible for everyone to sell at the top before the implosion; the assets are owned by someone all the way down. The central bank/state plan for 2015 is a continuation of the same plan that’s been in play … Continue reading

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