Re: Generational Dynamics World View News
Posted: Wed Feb 06, 2019 7:28 pm
** 6-Feb-2019 How do you prepare for disaster, but you don't know when it's coming?
It's gotten to the point where a lot of people know that there's
going to be a major financial crash because of the unstoppable
US government debt.
However, there was an exchange on tv (paraphrasing):
Q: Do you think that the market will keep going up?
A: A financial crash is inevitable because of US debt.
Q: So what are you saying -- that just because there will be
a financial crash in five or ten years, people should stop buying
stocks?
A: You should be a stock picker, and invest in value stocks
with a low price/earnings ratio.
What's funny about this is because here's a person who actually
doesn't believe that the stock market will go up forever, but still
manages to find a way to provide massive information.
Analysts on tv only refer to price/earnings ratios based on "forward
earnings," which are made-up numbers by a company's PR department.
The only consistent and comparable p/e ratios are based on "trailing
earnings."
** 28-Aug-15 World View -- Explanation of Price/Earnings ratio and Stock Valuations
** http://www.generationaldynamics.com/pg/ ... tm#e150828
However, the rest of this mini-conversation illustrates another problem.
We know that a financial crash is coming, and we know that a war
is coming with China. But we don't know whether it will be
tomorrow, next week, next year, or after that.
I always use a couple of metaphors in this situation.
One is the pressure cooker that will explode at some time, but
you don't know when.
The other is "the straw that breaks the camel's back" -- you know
that the camel's back has to break if you keep piling on straw,
but you can't predict which one

So what do you do? The person from Seoul who visited this forum
recently was wondering how he knows when to flee. If he leaves right
away, then Seoul might be a peace for a year. But if he waits until
the North actually attacks, then all the planes will be booked up.
So in terms of advising people what to do, what should people do in
these situations?
It's gotten to the point where a lot of people know that there's
going to be a major financial crash because of the unstoppable
US government debt.
However, there was an exchange on tv (paraphrasing):
Q: Do you think that the market will keep going up?
A: A financial crash is inevitable because of US debt.
Q: So what are you saying -- that just because there will be
a financial crash in five or ten years, people should stop buying
stocks?
A: You should be a stock picker, and invest in value stocks
with a low price/earnings ratio.
What's funny about this is because here's a person who actually
doesn't believe that the stock market will go up forever, but still
manages to find a way to provide massive information.
Analysts on tv only refer to price/earnings ratios based on "forward
earnings," which are made-up numbers by a company's PR department.
The only consistent and comparable p/e ratios are based on "trailing
earnings."
** 28-Aug-15 World View -- Explanation of Price/Earnings ratio and Stock Valuations
** http://www.generationaldynamics.com/pg/ ... tm#e150828
However, the rest of this mini-conversation illustrates another problem.
We know that a financial crash is coming, and we know that a war
is coming with China. But we don't know whether it will be
tomorrow, next week, next year, or after that.
I always use a couple of metaphors in this situation.
One is the pressure cooker that will explode at some time, but
you don't know when.
The other is "the straw that breaks the camel's back" -- you know
that the camel's back has to break if you keep piling on straw,
but you can't predict which one

So what do you do? The person from Seoul who visited this forum
recently was wondering how he knows when to flee. If he leaves right
away, then Seoul might be a peace for a year. But if he waits until
the North actually attacks, then all the planes will be booked up.
So in terms of advising people what to do, what should people do in
these situations?