Prosperity Comes From Eliminating Jobs, Not Saving Them

Source Virtually every election season, we’re treated to a chorus on job creation. Who has saved more jobs. How will they protect your job. And who is going to be the grinch that takes your job away. But perhaps our focus is misguided. Perhaps we should be focused not on creating jobs, but on eliminating … Continue reading Prosperity Comes From Eliminating Jobs, Not Saving Them

Correlation between Stock-Market-Returns, GDP Growth and PE Ratios

In an earlier article, we discussed the primary factors that drive long-term stock market returns. Namely: Earnings yield Real GDP growth Inflation We also discussed ignoring fluctuations in the PE Ratio, because: PE ratios tend to be cyclic, and do not increase or decrease in perpetuity Over the long term, fluctuations in the PE ratio … Continue reading Correlation between Stock-Market-Returns, GDP Growth and PE Ratios