A nasty set of facts you're probably not paying attention to:
Despite the Federal Government and Federal Reserve's best efforts to "re-ignite animal spirits" the expansion of leverage -- that is, debt -- in the economy has factually failed and is factually contracting against GDP.
The S&P went from about 100 to 1500 and the Dow from 1,000 to 14,000 predicated on this leverage expansion over the space of 30 years. That leverage expansion has ceased despite the stated intent and policy of Ben Bernanke to force Seniors and others into the market -- and to make them acquire more leverage.
Likewise, so-called "earnings expansion" was actually predicated on business leverage, and that underlay most of this "gain."
Finally, and most-ominously, tax receipts went up at a dramatic rate due to the same expansion of leverage. This is the "secret" of the so-called "Laffer Curve" (and is about to be exposed as the "driving force" as it reverses and renders people like Larry Kudlow, one of the curve's loudest apologists, disgraced fools.)
When the paradigm shifts so do the results.
The market is at least 50% overvalued, and may be overvalued by 80%.
So is land and so are houses.
Where We Are, Where We're Heading (2013) - The annual 2013 Ticker
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