Not at today’s valuation levels. That would be impossible. Some top economists are starting to jump ship into the view I first outlined here over two years ago.
- Economist Tyler Cowen says the economy might be a disappointment for years to come — and we’ll just have to get used to it
- Larry Summers: Growth yes, but ‘not inspiring’
Listen, this is rather simple. The PERCEIVED economic growth we have experienced over the last 5 years had nothing to do with reality. It was a function of liquidity, QE and zero interest rates. Imagine being broke and then somehow managing to get a credit line for a $1 Million shopping spree. That is precisely what happened to the US Economy over the last few years. It feels good while it lasts, but it doesn’t accomplish anything.
Now, there is nothing left to propel us forward and to instigate true economic growth. Plus, we have borrowed from the future. That is to say, the time to pay the piper might soon be at hand.
