Don’t Be Fooled

28.08.2017 • Switzerland

Henry Bonner – Strategy and Council Letter (Switzerland) –

Tomorrow, in Paris, Dr. Herlin will rejoin me again to speak bitcoin …

To let you enjoy this interview, send me your questions …! Tomorrow, during the interview, Philippe will answer. You will be able to have the answer to your question – on bitcoin, ethereum, blockchain, etc. Just reply to this email with your questions.]

In April, in Virginia, the heat already allowed to bathe … as in this stream of country …

Here in Switzerland, at the end of August, the sun continues to shine, and we can continue to bathe – in Lake Geneva in Lausanne or in the Rhone in Geneva …

However, in the blink of an eye, time may change …

In Texas, Mother Nature seemed to want to unleash the apocalypse on the heads of the inhabitants … causing at least 5 deaths.

Unlike the power and impertinence of a storm, the stock market, it seems, moves like a brook … its course continues day by day … without scaring, without causing floods or disaster .

For 8 years, the stock market has continued to climb again and again … without backwash, and without fears …

But in the history of Wall Street, the increases are always followed by declines …

Wall Street climbs for 100 months in a row … In length, the rise of Wall Street approaches the period from 1990 to 2000, an increase of 113 months …

By the end of the 1990s, however, markets fell … and took years to recover … before falling again under the impact of the 2008 crisis.

In France, the CAC 40 has still not regained its 2000 levels (CAC 40 evolution on the graph below – the index has changed little since 2000) …

According to the CAC 40, our stock market had more value in 2000 and 2007 than today …

Since then, we have only kept our heads above water … but without any progress …

Politicians, media, financiers … All claim to see a clear sky … and a water without wave …

For them, a wind of progress blows … bringing their ships to their destination without fail … thanks to advances in computer science, the genius of trading algorithms, and the wisdom of the ECB and the Fed …

Yet, looking out the window is enough to deny their assurances: in France, the economy is not advancing … the market is worth less than in 2000 …

A generation of students pass the bac – with access to smartphones, tablets, apps, and all the internet knowledge … but the stock market had more value at the time of their birth than today …

No Progress …

In the markets, investors evaluate equities based on their performance in the past, and their potential for the future …

For this reason, a company can generate losses year by year – Tesla, Uber, Snap Inc, to give examples -, retaining a valuation of billions of euros …

For investors, today’s losses will give way to gains in the future … As long as stocks rise in price, investors make gains despite …

However, the valuation of the CAC 40 has declined over 17 years … and interest rates – indicating the demand for capital – are close to the floor …

Despite the convergence of factors – acceleration in innovation, an increase in the number of graduates of physics and mathematics, advanced in computer science, digital, photography – our markets refuse to give to the myth of growth …

Yet, for 8 years, the markets have been feeding on hope after another … 3D printers … nanotechnology … biotechnology … photon computers … “renewable …” robotics … “IA …” “cloud computing …” and Algorithms to answer all …

… but, nevertheless, the market sees less potential – in France in any case – than in 2000 …

Yes, innovations have taken place … Smartphones, for example, have put computing power equaling millions of computers of the 1960s, at hand …

In spite of everything, the reality of products – and innovations – did not reach the height of the dreams of the markets in 2000 … where speculators imagined themselves to change the ways of working … to invest … and to operate businesses.

Thanks to the Internet, to the democratization of information and technologies, everyone would work more or less on their own account … without depending on employers … and allowances, unemployment, and HLM would fade in the past …

Since then, realities have disappointed expectations … and markets have stopped believing in a revolution in ways of living …

What to do…?

Tomorrow, during my meeting with Dr. Philippe Herlin, we will explore the potential of the blockchain, and crypto-currencies …

Bitcoin can bypass a bunch of money control systems – from savings accounts, to investment boxes, to insurance …

Thanks to the blockchain, the power of states to control and block your accounts, transfers, and expenses could disappear …

In countries like Venezuela, with inflation of more than 1000% per year, bitcoin can even save lives …

Reminder: Send me your questions by replying to this mail …! We will reply tomorrow – and then we will publish the questions and answers.

More to come on the subject of the bitcoin …

Truly,

Henri Bonner

-Read more at www.lettre-strategie-conseil.com (French)-

Related Posts

Comments are closed.

« »