Simone Wapler – La Chronique Agora (France) –
This poses a problem for us ordinary investors who are not part of the Parasitocracy: movements are difficult to anticipate rationally.
For a long time, we have been referring to the excessive valuation of companies in terms of all historical standards.
In the United States, a mere critical review of the statistics showed that the economic outlook was far from flourishing and that corporate profits were stagnating (at best).
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Among the subjects of concern that we address in a recurring way:
The very low rate of participation in employment, the alarming level of student loans,subprimeThe failure of the purchasing power of the workers, the difficulties of the gas and shale oil industries developed on credit while the barrel was at a high price …
Despite these realities, the indexes are breaking record on record.
Simply because the profits of the big companies that compose them do not depend on these facts, on a real purchasing power, on investments that can increase wealth.
These large companies depend either on state contracts (health, armament, infrastructure …) financed by the borrowing or the taxes, or of financial engineering. Apple’s case that borrows to buy back its own shares and pay dividends to its shareholders that we often talk about is emblematic.
Apple prefers to borrow to pay dividends instead of investing its $ 256 billioncash
The lever of stock market hikes and profits is not the creative investment of new wealth, but politics and cheap credit driven by politicians and central banks.
From then on, all political uncertainty frightens and triggers panic sales.
Under these conditions, as an individual, if you want to invest your money in the shelter of these irrational and unpredictable movements, your choice is limited:
- You remain on the stock market but you must favor companies that are not under political influence and operate in the most competitive sectors possible. This eliminates the very large companies in the health, environment, energy, weapons … You have to buy cheap but most of the big values are too expensive because of the infinite and free credit that allows the institutional ones to place themselves by borrowing.
- Or you invest directly in lending or capitalizing small businesses profitably in competitive markets … without going through the polluted “financial markets”. This will be the focus of our new serviceReal ProfitsWhich will be launched on 8 June.
You may not know:Most capital gains are now realized before the initial public offering in the United StatesBut alsola France. However, the entrepreneurial financing sector is no longerBusiness angelsPrivileged or funds managing the assets of large wealthy families. It is also accessible to you and from June 8th we will help you sort out this market.