Ending October 10, 2025
Video Overview
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THIS IS VERY IMPORTANT
These old guys don't know anything. Don't they know about AI? I'll bet they are missing out on all the gains!
This shows just how far the S&P 500 has run ahead of earnings over the past decade. It won't last. Earnings would have to increase without the price responding which is highly unlikely.
As we approach the end of the year, we can expect a good run but this is generally historical rather than attributing it to anything special about then current market. Paul Tudor Jones is a well respected trader who said "nothing good ever happens under the 200-day moving average". So watch the 200 day simple moving average.
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Short Stories
- Tech stocks had the largest ever weekly inflow of funds - $9.3 billion. Bubble!
- China flooding South East Asian and European markets. But not with rare earths.
- Trump trying to send in the guards.
- The US economy is faltering.
The Oz Economy
The next decade or two will be about deleveraging from the extreme level of household debt. In order for an economy to grow, some other sector in this case, government or business, must borrow. That's the way a debt economy works. There are very few if any alternatives.
Jobs ad falling is not a good sign for the economy
Even the RBA is concerned about markets.
But gold continues to shine..........
Lesson of the Week
At every point in your investment journey, you must know roughly what the expected return is and how you position your portfolio for long term success. That means understanding asset allocation through the market cycle.
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