Stocks hit record high on sagging performance, higher debt.

Stocks hit record high on sagging performance, higher debt. by Simon Black – Sovereign Man

There’s something completely ridiculous happening around the world right now.

We can start in the United Kingdom, where the FTSE-100 stock market index hit an all-time high yesterday of 7454.

Simultaneously the British government released statistics yesterday showing that debt judgments and bankruptcy filings across the UK soared 35% in the first quarter of 2017 to the highest level in a decade.

British consumers are on a debt binge, borrowing (and now defaulting) at record levels.

This all sounds pretty sustainable.

Across the pond in the Land of the Free, the US stock market also hit a record high yesterday.

Simultaneously, consumer credit (i.e. DEBT) in the US is also at an all-time high of $3.8 trillion.

Even more specifically, margin debt, which is the amount of money that investors borrow to buy stocks, is at an all-time high.

Think about that: investors are borrowing record amounts of money to buy stocks at all-time highs.

This sounds like a fantastic trend!

If you look deeper, the numbers become even more bizarre; let’s go back in time a few years and I’ll show you.

In 2012, Coca Cola reported $48 billion in revenue for the year, and $9 billion in profit. That was a pretty good year for Coca Cola shareholders.

For 2016, however, Coca Cola reported revenue of $41.8 billion, and $6.5 billion in profit.

So when you compare 2016 to 2012, revenue declined 13%, and profit declined 28%.

Given those dismal figures you’d think that Coke’s stock price would be a LOT lower today than it was back then.

But no.

After Coca Cola reported its 2012 earnings on February 12, 2013, its stock price was around $37.50.

When Coca Cola reported its 2016 earnings earlier this year, its stock price was $41.25. And today it’s even higher at $43.50.

Even more curious is that Coke’s 2012 report shows long-term debt of $14.7 billion. By 2016, long-term debt had more than doubled to $29.6 billion.

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Personal liberty is deteriorating, the economy is on life support and can flat line any day now, governments around the world are getting crushed by debt, and it’s all getting worse at an exponential rate. Out of these circumstances Sovereign Man was born, and since 2009 we’ve scoured the globe for information, solutions and contacts that help individuals and companies rise above the problematic politics of bankrupt nation states and the fraudulent and fragile financial system. Our goal at Sovereign Man is to help you make more money, keep more of it and take back your freedom from out of control, destructive governments. Contact - https://www.sovereignman.com/contact-us/