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Chart of Confusion, Which is Correct?

By: readtheticker | Monday, December 2, 2013
Chart of Confusion, Which is Correct?

What is wrong with this picture?

1) Near all time high NYSE prices suggest that economic matters are in great shape that justify high asset prices and US corporations are doing great.

2) All time high NYSE Margin levels suggest that it is acceptable to own stocks with margin as the investing climate allow more risk as equity prices will go higher.

3) US CPI YOY% change is below zero and the trend is down, which suggest there is a current risk of deflation. Deflation that results in lower corporate revenues, lower wages and eventually lower assets prices.

POINT: Someone is wrong?

NYSE versus Margin Debt and US CPI Chart

Investing Quote...

"It cost me millions to learn that another dangerous enemy to a trader is his susceptibility to the urgings of a magnetic personality when plausibly expressed by a brilliant mind." ~ Jesse Livermore

"The four most dangerous words in investing are 'This time it's different'." ~ John Templeton

 

Author: readtheticker

readtheticker
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