STOCKS IN FINAL STAGE OF UBER-EUPHORIA
But all that is needed in overvalued markets is a break of confidence. And with the 3 dozen global risks that I outlined in last week’s article. The market is now in the final stage of uber-euphoria with prices going up whilst profits are stagnating as the graph below shows.
40% OF US COMPANIES ARE LOSING MONEY
If we look at the detailed picture it is a lot worse than the picture above shows. Almost 40% of US companies lost money in the last 12 months as the Wall Street Journal just reported. That is a remarkably high percentage and the highest since the late 1990s.
