As you can see from the chart above the Shenzhen has appreciated 100% year to date 2015. The Chinese markets have benefitted enormously from a number of factors, one of them being money re-directed from the falling housing market.


A Look At The Stock Markets In 8 Charts

Correction Overdue ?

 May 26th 2015, Charts supplied by Zerohedge


Note: We are not advising our readers to sell the stock market, however preparation and a realisation of how rich these markets are presently should be noted. Please see disclaimer at the bottom of this article.

Retired central banker, blogger, bond guru and hedge fund consultant Ben Bernanke just uttered the following....


Considering the spectacular rise since 2009 I thought we should have a look at the US share market, especially considering the USA is regarded as the economy that is leading the world into a sustainable recovery ?

Something is just not quite right !

US Stocks markets very much traded in line with world commodities until 2013 of course.


nope, no mispricing there at all...


Almost imperceptible amount of mispricing here...


Cyclically, even Fed President Yellen thinks stocks are expensive...


and the median stock has never been more expensive...


Some facts for you...

-  Valuations are at extreme highs on Wall Street. Take Warren Buffett’s favorite measure — market cap to GDP. With an eight-month exception at the height of the dot-com boom (and you know what happened next), the value of all outstanding S&P 500 shares is the highest it has been relative to US GDP in the last 100 years.

-  Meanwhile, Deutsche Bank is warning that S&P 500 earnings per share will be flat this year when compared with 2014. Retail sales are down about 9% on an annual basis over the past three months. And the US GDP has slowed to an annual rate of just over 1%… with the possibility of a surprise recession on the horizon.

Crashes and bear markets happen. This seems as good a time as any ?


Another little factoid that is quite important.

- Caterpillar  - the bellweather company that indicates where the world is headed ? According to the latest CAT retail sales data, Caterpillar has now reported an unprecedented 29 months of declining global retail sales, with the month of April seeing a 16% Y/Y collapse in China (after a 25% plunge in 2014 and a 20% plunge the year before), while Latin America just suffered an epic 44% Y/Y crash, the biggest going back to 2009, after a 28% drop the year before.This is the worse set of results in their history.

Or as far as the industrial and heavy equipment bellwether is concerned, the emerging markets (or BRICS) are in an unprecedented collapse.

To put Caterpillar's ongoing second great depression in context, during the Great Financial Crisis, CAT suffered "only" 19 months of consecutive retail sales declines. As of April 2015, this number is now 29, and there is no hope in sight of seeing an annual rebounce any time soon.


But apart from that - nope - no mispricing whatsoever.


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