Guest Post by Simon Black
Late last week, the Federal Reserve gave its strongest signal yet that they would cut interest rates soon.
And in anticipation of yet another endless flood of cheap money, the US stock market soared to an all-time high.
Honestly it’s a bit absurd when you think about it. Look at Coca Cola as an example: its shares are now trading at a record high price.
Yet Coca Cola’s business is actually shrinking; its revenue has DECLINED each year for the past eight years.
And Coca Cola’s 2018 profits were 43% LOWER than they were back in 2011.
So obviously Coca Cola’s record high stock price has nothing to do the company’s performance… and everything to do with the fact that an unelected committee of central bankers has decided to print more money and slash interest rates.
Continue reading “Quite possibly the world’s cheapest stock market”
