Friday , 1 November 2024

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Are You a “Greater Fool” These Days? (+2K Views)

It does not matter if stocks are insanely overvalued as long as there's a foolish participant who is willing to pay a higher price. That's the essence of the "greater fool theory" and, right now, there are more foolish buyers who want "in the game" than risk-reducing sellers who want to scale back.

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What Goes Up Exponentially Eventually Drops Like A Stone – Got Gold?

When growth becomes exponential the likelihood is that it won’t last and that there will a substantial move in the opposite direction. This article looks at the unsustainable trends in most asset classes, population numbers, inflation and credit growth and discusses the dire consequences that are most likely to unfold in the years to come as a result.

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Debt: A Trillion Dollar Investment Opportunity (2K Views)

American credit card balances will hit $1 trillion in 2016, a debt burden that has never been reached before, not even during the go-go days of the dot-com boom. On the other side of the coin is the fact that there is a lot of profit to be made on the lending side of those trillion dollars of debt as the average interest rate on credit cards today is a whopping 15.19%. Given that the national average for 1-year CDs is a measly 1.09%, it is clear that credit card companies are making lots of money.

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