King World News interviewed Bill Fleckenstein, president of Fleckenstein Capital, on the markets after the Spanish bailout, which he called a “complete airball of an idea.”The stock market is kind of a farce, which is not to say that stocks are uniformly expensive because lots of them aren’t.
So I think there’s a lot of fluff in the S&P. But the fact that the market is not hugely expensive is why it seems somewhat impervious to some of this bad news. Plus, when you have these algorithmic trading programs on the loose, trying to ferret out what the market might be telling you is next to impossible.
Fleckenstein stated in an article with MSNBC last month that “nothing will change unless change is forced upon us by a crisis.” He expanded on those thoughts in his interview with KWN.
Similarly, all of the city, state, county, and government debt that we have, because the debts and contingent liabilities grew large through 15 or 20 years of money printing, has created much bigger problems. This is a long way of saying, it’s not just the bubbles that these idiots produced that caused the problems, it was (the fact) that nobody focused on the long-term issues during that period and everything just got worse.
In short, Fleckenstein thinks the focus should be on the long-term and not the ups and downs of the stock market. Figuring out where the stock market is going to go is extremely difficult, if not impossible as he notes, but building and planning for the long-term certainly can be done.
Read more at KingWorldNews.com.