07 Jun, 2021 20:15 am

Have Stocks Already Priced In The "Economic Boom"?

Have Stocks Already Priced In The "Economic Boom"?
ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

There is no historical precedent, anywhere globally, that shows increased debt levels lead to more robust economic growth rates or prosperity.Since 1980, the overall increase in debt has surged to levels that currently usurp the entirety of economic growth.With economic growth rates now at the lowest levels on record, the change in debt continues to divert more tax dollars away from productive investments into the service of debt and social welfare.Given the long-term historical correlation between economic growth, corporate earnings, and annualized returns, the reversion to trend growth has implications for investors.

” The reason is that once economic growth reaches higher levels, stocks have climbed to levels incorporating those expectations.It is impossible to sustain higher rates of economic growth without wage growth.

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