With the Sovereign Debt Crisis, Bail-Ins, Cycle of War, Global Contraction if Capital Flows & Investment, welcome the age of DEFLATION and yet another reason to BUY equities. The NASDAQ Composite is up 50.9% from the 2007 high as of the close of July. This index still has the capability of reaching 6500,00 level compared to the 2000 high of 5132,52.The S&P500 is up only 22.49% for the same period while the Dow Jones Industrials is up 15.9%,
There is no question, where do you put your money? If you cannot trust banks, bonds are risky, cash is being eliminated, FATCA is reducing investing overseas, just ask yourself – what is left? Capital is being driven into equities and the retail public is still not in like it was, liquidity remains low, the talking heads keep saying this is a bubble so sell and buy exactly what? Then the Fed along with the Bank of England are contemplating rate hikes of quarter point changing the trend in interest rates. The central banks will recognize that Europe is caught in the Euro vortex of disintegration and will depart from their policies and pay attention to the asset booms domestically.
There will just be no place to stuff serious money BUT equities and corporate bonds. It becomes a process of elimination.