U.S. Stocks: Many Stocks Are Now Very Expensive

Donald Trump’s election has caused an impressive U.S. stock market rally but many companies, many stocks are now very expensive. (SPDR S&P 500 ETF Trust (SPY), SPDR Dow Jones Industrial Average ETF (DIA))

This is Going to End Disastrously

As you all know we had a problem in 2008 because of too much debt. Now the debt is much, much, much higher everywhere in the world. A lot of people have discussed austerity but nobody has lower debt this year than last year, much less than in 2008 and the debts are going higher every ay, every week, every month. So this is going to end disastrously.

Currency Market: U.S. Dollar Strength Will Continue

This is going to go on for a while. The U.S. Dollar will get overpriced and may even turn into a bubble before the rally is over. (EUR USD forex cross, USDJPY forex cross, SPDR Gold Trust ETF (GLD))

Stock Market: Where To Focus Next

Right now the main factor is Mr. Trump and his talk about a lot of good news, which we all want to hear. But again, now we are going to start focusing on interest rates and what is happening on the real economy. (SPDR S&P 500 ETF Trust (SPY), SPDR Dow Jones Industrial Average ETF (DIA), iShares Barclays 20+ Yr Treas.Bond ETF (TLT))

Italian Banks, Deutsche Bank (DB)

The Italian banks are in trouble but so is Deutsche Bank (DB), which is the largest bank in Germany.

I Expect Bad Financial Times To Come

I do not see how the European union can survive on its current form. The world needs something to compete with the U.S. Dollar which is a terribly flawed currency. The Euro currency in theory would be good for the world. Unfortunately it was badly executed, a good theory badly executed and now we have many problems.

So, I do not expect the Euro currency to survive and I doubt the European Union will survive as we know it. Because since Brexit occurred it has encouraged many separatists in Europe that want to split up their countries from the EU.

As I expect bad financial times to come, when we have bad financial times, people always look for big change.

The U.S. Will Face a Crisis or A Semi-Crisis

No country has got itself into this kind of situation gets out without a crisis or a semi-crisis. Interest rates have started going back up, if they go to normal historical levels, it is impossible for the United States to pay the debt. We have to face the facts. (SPDR S&P 500 ETF Trust (SPY), SPDR Dow Jones Industrial Average ETF (DIA), iShares Barclays 20+ Yr Treas.Bond ETF (TLT))