Loading ...This guy (the smartest one I’ve ever seen on TV) was interviewed yesterday morning on Bloomberg TV. He knows all the past decades of central planning manipulation of the markets (like zero interest rates) have distorted markets and values. He predicted the dot com bust in ’00, and the stock market crash in spring ’08. He made over a billion dollars betting on the crisis in Summer ’08. Where can investors go now? Explained like this in my words.
“There are only two “doors” to invest for long term. One door is the confidence of the past. Keynesian economics. Continuing success of the central planners Greenspan Bernanke etc. “The other “door” is confidence that all the past distortions are trying to right themselves. A reversal. The gov’t media will always give a feeble excuse for a crash like it was a freak Black Swan event. But in reality they are not black swan events. They were easily predictable .
He uses Tobin’s Q Ratio that predicts major abrupt drops in the general stock market. Not individual stocks. He say’s P/Es and similar things are useless for predicting what an individual stock will do.
http://www.bloomberg.com/news/videos/2016-02-17/has-the-market-crash-only-just-begun