All posts in " Equities "
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Why Are Equities so Disconnected from Economics?

By admin / July 12, 2019

Normally, equity valuations reflect the present value of future cash flows that are primarily a function of current cash flows, growth expectations, and then the discount rate. Most fundamentalists will look at the cash flow generation in both the short and long-term. With equity valuations at their record highs, investors, in theory, are showing confidence […]

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Central Banks Buying Equities

By admin / June 20, 2019

QUESTION: Central banks around the world are currently purchasing equities. If they continue to purchase equities, will we ever have a significant market downturn again? What happens when central banks acquire enough shares to control corporations? PE ANSWER: Yes. The central banks have been buying equities to try to diversify their balance sheets as they […]

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Why Do Some Pension Funds Avoid Equities?

By admin / May 16, 2018

QUESTION: Hi there Mr. Armstrong In attempting to synthesize some of your past comments, I wonder if it is accurate to conclude that rate hikes are the lesser of two evils between collapsing pension funds and higher debt servicing costs? If so, the implication is that budgets don’t matter, since it appears you can add another […]