Executive Summary A good measure of the reasonableness of stock market prices is the Price to Sales ratio, mainly because gross sales numbers are hard to manipulate. With a historical average of 1.81, the current 3.38 number (see first graph) is over three standard deviations from the [...]

Executive Summary Economist John Mauldin wrote several articles reviewing hedge fund manager Ray Dalio’s book “How Countries Go Broke: The Big Cycle.” From Mauldin’s Part 1 article he said: “I described the five stages of Dalio’s Big Debt Cycle. I dubbed them the ‘Stages of Grief.’ Briefly, [...]

Executive Summary From the bottom of the Financial Crisis in March of 2009, the S&P 500 climbed to a recent high of around 6700. Along the way from 2009 to current, the Federal Government over tripled the money supply and created numerous programs to give away money. [...]

Executive Summary While the stock market is rising, so also is the U.S. Federal Debt. Currently the balance is rapidly approaching $38 trillion. In the first graph, one can see the Federal deficit spending. With the employment picture weakening, the suspected response from the Government to a [...]