I've been meaning to ask this for a long time, but keep forgetting (Old age!). Generally speaking the markets like to use historical metrics for the evaluation of "where we are". For example, using the P/E number to determine whether or not the market is expensive, or a good value. But since M1 and M2 money has expanded into historical highs, don't we have to increase our normative metrics to account for that expansion? Perhaps this would be a good topic for you to cover in the next informationist? Your thoughts.
Hey Mark, I understand what you are saying here, but the expansion of M2 should hit both sides of the equation here (price and earnings) thereby keeping the ratio valid across time.
Always look forward to my Sunday reads and trying to share with as many people as possible. Great stuff, and everyone desperately needs this education. Thank you, thank you, thank you!
Read this article, not to coffee, but while donating blood. Although I did drink a cup of Haitian coffee this morning, which I’ve never had, prior buying this batch.
Great article. Love the breakdown of the 3 ring circus and reiterating the system is broken. As an engineer, I think in systems, it’s evident this financial system just does not work. I’ve seen the “unsustainable” chart before, but today it hit me in a different way. I realized my official retirement age will hit in the 2040’s, and my daughter will be in her mid-20’s, all the whole interest expense is blasting off to Pluto. It reiterates my sense of urgency to stack as many Sats as possible and be a better risk manager at home.
Thank you James! Excellent read as always. I’m looking forward to seeing the details of investment strategies/options. Currently invested in Bitcoin, RE, and equities but would like to diversify further. Interested in gold and silver, but does that mean physical or paper, both? Also, I wouldn’t even know where to begin on artwork and coins.
Do you think the us treasury/fed reserve note will be replaced by btc or a US dollar backed by a basket of hard monies? And will I be alive to see it? 😎
Thank you for providing this service, James. You have a gift for explaining the muddled craziness in a digestible way.
Another great educational piece, James! I passed it along to some of my family members as well.
I love that and sincerely appreciate it Dr. Jeff. Thank you!
James,
I've been meaning to ask this for a long time, but keep forgetting (Old age!). Generally speaking the markets like to use historical metrics for the evaluation of "where we are". For example, using the P/E number to determine whether or not the market is expensive, or a good value. But since M1 and M2 money has expanded into historical highs, don't we have to increase our normative metrics to account for that expansion? Perhaps this would be a good topic for you to cover in the next informationist? Your thoughts.
Mark R. Link
Hey Mark, I understand what you are saying here, but the expansion of M2 should hit both sides of the equation here (price and earnings) thereby keeping the ratio valid across time.
Why didn’t I think of that😜
It’s my fault, making you think on Sundays. 🤓
Always look forward to my Sunday reads and trying to share with as many people as possible. Great stuff, and everyone desperately needs this education. Thank you, thank you, thank you!
You bet, Mark. Thank you, I sincerely appreciate that!
Read this article, not to coffee, but while donating blood. Although I did drink a cup of Haitian coffee this morning, which I’ve never had, prior buying this batch.
Great article. Love the breakdown of the 3 ring circus and reiterating the system is broken. As an engineer, I think in systems, it’s evident this financial system just does not work. I’ve seen the “unsustainable” chart before, but today it hit me in a different way. I realized my official retirement age will hit in the 2040’s, and my daughter will be in her mid-20’s, all the whole interest expense is blasting off to Pluto. It reiterates my sense of urgency to stack as many Sats as possible and be a better risk manager at home.
Thank you James! Excellent read as always. I’m looking forward to seeing the details of investment strategies/options. Currently invested in Bitcoin, RE, and equities but would like to diversify further. Interested in gold and silver, but does that mean physical or paper, both? Also, I wouldn’t even know where to begin on artwork and coins.
Do you think the us treasury/fed reserve note will be replaced by btc or a US dollar backed by a basket of hard monies? And will I be alive to see it? 😎
Thank you for providing this service, James. You have a gift for explaining the muddled craziness in a digestible way.
Good question. I'm wondering this myself :)