In normal times, they would’ve already come unglued. But these are not normal times.
In the first and hilarious section of the Keiser Report, Stacy Herbert and Max Keiser discuss how artificial intelligence and machines are replacing lawyers and other creatures, and what in the end will come of humans.
My interview with Max Keiser starts 11:50 minutes into the video. We discuss what caused the S&P 500 index to soar 87% since 2011, even as aggregate earnings of the companies in the index in 2016 were back where they’d been in 2011. In other words, what caused stocks to skyrocket over five years, even as earnings went nowhere? And how will the equation come unglued?
Here is my article with a chart on this cycle of PE-multiple expansion – and the inevitable compression. So how long before the stock market hits the wall? Read… This is Worse than Before the Last Three Crashes