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With the lamestream media cheering the asset bubbles at every opportunity I’ll note that the new all-time highs with stocks and many real estate markets on a nominal basis are built on poor fundamentals and nose-bleed valuations. On a real or inflation adjusted basis real estate prices are back to levels seen in 2003-2004 on the way up and 2007-2008 on the way down, using the Case/Schiller Indexes.

Corporate profits bucked the trend with a 7.6% advance in the 3rd quarter to 1,589.8 billion Dollars on a preliminary basis, as per the Bureau of Economic Analysis.

All that said and it appears that 2016 is on track to go down as the year when nothing mattered, economics, the business cycle, profits, debt, politics, election upsets, terrorism, Brexit, financial crisis and the list goes on and on.

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