Trick or Threat

"It's the Stay Puft Marshmallow Man."
--Ray Stantz (Ghostbusters)

A couple of posts back, we noted that persistent debt reduction may constitute a stiff headwind against higher equity prices for a prolonged period.

An even more ominous structural threat to stock prices is the massive global movement towards more centrally planned economic configurations. The more we move in the direction of bureaucratic market control, the greater the likelihood of lower future returns on capital.

That, my friends, is singularly bearish for stock prices (and for the world's standard of living) over time.

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