The following is a direct quote from part of a column from April 19th Wall Street Journal. "Big company shares are getting more expensive, even as their prospects dim, and the bond market suggests that clouds are gathering over the economy. All the main valuation tools now show stocks are expensive, compared with history. The P.E. ratio (price-earnings) stands at 16.7 times higher than any time from 1985. Other widely used valuation gauges tell a similar story."
For months, the Journal has been posting articles about how the stock market is weak, and for people to beware. Some say that there is a severe market 'correction' every eight years. The last one was in 2008. Google "Dow-Jones P.E. ratios," and you will see that currently they are 24.22. The late Richard Russell said that stocks should have a P.E. ratio of 10-12 to be valuable. In 2008, before the crash, they were 21.46. I own no stocks, but being a lover of railroads, I sort of watch Union Pacific, which has gone from 120 down to in the neighborhood of 80. I know this is because of low oil prices and low coal demands. I also watch the yards at Grand Junction Colorado and see well over 100 diesel locomotives stored, and the same in another yard in Wyoming. I just think the market, just like the web site telling the P.E. ratios says, "Stock Market Crash -2016. Day of reckoning is fast approaching." I am simply quoting other's opinions, but opinions I think should be listened to…if you own stocks. I am not able to tell the future…only speculate. I am glad I have gold and silver, rather than stocks! I believe the entire world's economy is shuddering. Greece and Venezuela are toast, and if the UK decides to get out of the EU in June, their economy will quake also.
From a column in the Wall Street Journal on March 8, 2016, under the headline "Rising Global Debt and the Deflation Threat." It's a long column, but here's one paragraph. "Global debt of all types grew by $57 trillion from 2007 to 2014 to a total of $199 trillion, the McKinney Global Institute reported in February last year. That's 286% of global GDP, compared with 269% in 2007. The current ratio is above 300%. The big boost came from governments. The debt load, McKinney noted, "Poses new risks to financial stability, and may undermine global economic growth. "Helicopter Money" with the fed bypassing the banks and somehow funneling money directly to consumer accounts, is even being discussed in the press." Then we will have runaway deflation-inflation, and precious metals prices, will reach the heavens, in my opinion. Metal prices have gone up, in the main, because more of the world is growing distrustful of unbacked paper and debts contracted by their governments
Silver Is A Huge Bargain
History tells us that for thousands of years, the ratio between gold and silver has been 16 to 1. In other words, gold has been 16 times more expensive to buy than silver. A month ago, the ratio was 83 to 1, and now is down to 72 to 1. Silver has gone up faster and further than gold, in other words. Were the ratio 16 to 1 now, silver would be priced at $78 per ounce, not $17. Will it return to 16 to 1? I think so…eventually. Mean time, silver is a screaming bargain. Naturally, it takes a lot of storage space and is heavy. I got $148,000 worth of gold by UPS yesterday, and it weighed about two pounds. I just got $15,000 worth of silver today by UPS, and it is in two very heavy boxes. Suit yourself, but if you have space, get silver. If you're a Democrat, naturally, buy stocks.
Ted Cruz
The internet is full of lies and fables. I discard many of them. However, the gossip about Ted Cruz seems so overwhelming and scandalous, that the media will not publish it. For instance, today someone sent me a column which said that Cruz spoke to a Jewish group and said that 'God chose him to be president.' Several say that Cruz's wife was at one time a 'call girl.' Many internet columns say that Cruz was a virtual Canadian citizen until he decided to run for president, and that technically, he is ineligible. Others say things about Hillary and Trump, but none so outrageous as about Cruz. Those about Hillary are really funny, and cartoonish. I just have never heard anything scandalous about Trump, other than "Trump University," and I have heard explanations about that one. One thing about Cruz than cannot be denied, and that is that out of 100 Senators, none like him. Remember when he shut down the government a couple of years ago? He was holding the Senate floor for many hours and actually caused the government to shut down, causing much hardship for many people. That was absurd. He had no votes to get his way, but that didn't stop him. He undoubtedly is a great lawyer, has practiced before the Supreme Court, and few lawyers have done that. A great public speaker needs to pause many times. Obama has mastered that, and so has Cruz. We will see.