Tuesday, December 24, 2013
Michael Shaoul on BNN
He's locked down his blog but he can't stop me posting links to his interviews!
Here's a link to Michael Shaoul on BNN.
He's very bullish the US, go listen to his opinions.
One thing he points out, on the topic of multiple expansion and directed precisely at Jordan Roy-Byrne and other unbelievers, is that just recently the UST30Y was trading at a 2.5% yield, the equivalent of a P/E of 40. So the US equities' P/E right now is nothing to be concerned about; people simply haven't allocated sufficiently into equities, and as the reallocation continues, the market will get richer. People just disbelieve it because they were so traumatized by the last crash that they're still thinking in crash-protection mode.
He doesn't say anything about Rosenberg's capital expansion and productivity increases.
He thinks the big mid-cycle risk is interest rates going up faster than the Fed wants, because it's still too far behind the economic curve. Then again, I don't recall Shaoul being invited to join the FOMC.
He notes the global growth picture is exciting; you haven't had Europe, Japan and the US all growing at the same time since 1987. Which is nice, since that year was the start of 13 years of a fantastic US stock market.