24/01 Week, page-2

Market is unravelling

Market entering an environment of free cash flows -> balance sheets -> earnings predictability and growth

Why?

Because the Fed is withdrawing liquidity from the market and raising rates. What does this mean... it means that speculative money is going to dry up and cash has more value.

Financials will still do very well in this environment as deposits and savings actually mean something. Margins on loans will expand.

12 year liquidity driven market is over. GONE.

Instos look at Schiller p/e ratios where S&P is trading at 36.6 the upper end of lower band is 22 p/e, median is ~14-15 p/e

22p/e in a market is till expensive - 15 p/e is "fair value" sub 15 is entering deep value territory

40% decline in bear market should not surprise anyone at all. I think it will take about 12-18 months to get there

Sentiment isnt a pendulum once it sinks in it goes on and on

As for Yellen she is a senile old hag that has been behind the curve for five years. She created the bubble and continuing to utter nonsense that inflation will be back to 2% by end of year shows how senile she is.

She thinks commodity prices will start falling and speculative assets will take off again? She is clinically insane or certified stupid.

Financials + Commodities + strong free cash flows + strong balance sheets + strong earnings or bust.