September 22: Daily Contrarian Reads

As liquidity dries up in the global financial system, investors need a wake-up call. I have been running Stock Traders Daily, a proactive financial newsletter offering trading strategies, since the internet bubble in 1999, and I communicate with investors regularly. I’m hearing that investors do not respect the changes in liquidity that are coming......This brings us to a very important point: Artificially abundant liquidity is the driving force behind global asset rallies. Without central banks’ “help,” the S&P 500 Index would not be anywhere close to being valued at 24 times earnings, where it is today. Historically, that multiple is 14.5.

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David Stockman’s Contra Corner isn’t your typical financial tipsheet. Instead it’s an ongoing dialogue about what’s really happening in the markets… the economy… and governments… so you can understand the world around you and make better decisions for yourself.

David believes the world -- certainly the United States -- is at a great inflection point in human history. The massive credit inflation of the last three decades has reached its apogee and is now going to splatter spectacularly.

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