Submitted by Eric Bush via Gavekal Capital blog,
By any measure, DM Americas stocks aren’t cheap. The median price to cash flow ratio in the GKCI DM Americas Index is a hefty 12.39x.
Submitted by Charles Hugh-Smith via OfTwoMinds blog,
The only "growth" we're experiencing are the financial cancers of systemic risk and financialization's soaring wealth/income inequality.
The Keynesian gods have failed, and as a result we're in the eye of a global financial hurricane.
The Keynesian god of growth has failed.
The Keynesian god of borrowing from the future to fund today's consumption has failed.
Back during the last bubble, Business Development Corporation (BDC) pioneer American Capital was one of the hottest business models (and most desired companies to work for). However, when the bubble burst, so did the company's stock price, as well as its reputation, and in the past 9 years the company failed to see its stock price recover anywhere near the levels seen during the last bubble. Which is perhaps why moments ago in a dramatic move shaking up the BDC space, ACAS announced it would sell itself to another BDC titan, Ares Capital in a deal worth $3.4 billion.
It wasn't just Japan's PMI which overnight printed at a disappointing 47.6, missing expectations and signaling the sharpest decline in operating conditions since December 2012. Overnight Markit showed that the Chinese credit-induced global slowdown is coming far faster than most (if not Morgan Stanley) expected, when the Eurozone flash PMI printed at 52.9, down from 53.0 in April, below the 53.2 expected, and the lowest in 16 months.
Submitted by Mish Shedlock of MishTalk
Trade With Japan Collapses: Exports Decline 7th Month, Imports Decline 16th Month
Abenomics was back in the spotlight tonight. Global trade with Japan has collapsed. Exports are down and imports are down even more. The result is an unexpected rise in Japan’s trade surplus, yet another failure of abenomics.
Japanese Output Shrinks at Fastest Pace Since 2012
The Markit Japanese PMI shows Output falls at fastest rate in over two years, underpinned by a sharpdrop in new orders.