First, a gentle reminder of the utter farce that the US equity market has become:

Since 2014, the US has added 523,000 waiters and bartenders, and has lost 13,000 manufacturing workers.

A survey was recently released showing that 62% of Americans do not even have $1,000 in their savings accounts.

Anyone who has funds deposited with these banks should be really concerned because share price falls of these magnitudes can only have one outcome – BANKRUPTCY!

The P/S ratio is now well above the prior levels preceding the significant bear markets of 2000-2002 and 2007-2009.

Before-tax corporate earnings fell 4.9% in the second quarter from a year earlier, the fifth consecutive decline and the worst streak since the end of the recession in mid-2009:

At current levels, the S&P 500 needs to fall almost 40% to catch up with earnings:

As a result, S&P valuations are at 14-year highs!

The amount of QE STIMULUS being pumped into the world financial system has NEVER BEEN HIGHER:

Currently, buybacks are at the same level reached before the last stock market top:

When repurchases fall sharply, stock prices, in general, are more likely to fall as well.

A massive economic decline and stock market plunge is in its infancy.--Robert McHugh, Ph.D.

Historically, the months of September and October are arguably the 2 rockiest months for stocks.

The 2007-2008 financial meltdown provides a good case study on diversification as a means to wealth preservation.

”Wave 5 “market melt-ups” are the last bastion of hope for the “always bullish.” Unlike the previous advances that were backed by improving earnings and economic growth, the final wave is pure emotion and speculation based on “hopes” of a quick fundamental recovery to justify market overvaluations. Such environments have always had rather disastrous endings and this time will likely be no

different.” --Lance Roberts via

RealInvestmentAdvice.com

IHSG or JCI

The valuation spread between emerging market stocks and developed market stocks has reached its widest point of the last 15 years:

A reversal of fortunes is underway in the COMMODITY MARKETS, which is triggering a reversal of fortunes in the EMERGING MARKETS!

IDR

SEKTOR & SAHAM PILIHAN

PUSATKAN PERHATIAN PADA PERUSAHAAN DENGAN:

“Buying good companies at bargain prices makes sense.” - Joel Greenblatt

1. pertumbuhan penjualan dan laba bersih;2. cash flow yang positif;3. sedikit hutang;4. ROE yang tinggi, dan5. ekspansi dalam OPM.

My Favorite Investments

Real assets such as gold, silver, and oil, have been driven down to levels that are preposterously low. And the price action is driving a lot of people out of the markets and making them do the wrong thing.

MY FAVORITE FIVE

Get Ready for Coal’s Big Comeback

Get Ready for Coal’s Big Comeback

The gold shares to gold ratio is now at the bottom side of a 44-year down channel and it’s formed a several decade falling wedge.

@researchvaf

/valburyasia

THANK YOU

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www.valburysecurities.co.id