The World has lost 45 % of its Value since 2007

We get a lot of questions about why we don’t think inflation is staring us in the face, but the answer is simple, all the government loans and stimulus are a drop in the bucket compared to the value lost when the bubble burst.  One could make the case, and I would, that the value of some things, maybe stocks because they react so quickly, have reacted to realistic levels after the bubble. 

Real estate, whether residential, commercial, or agricultural, except for foreclosures, is still waiting inside the bubble.  Just look at all the homes for sale this spring, real estate agents think their houses are worth the same as 2007.  Take a look at zillow.com values and asking prices for homes, it is amazing to see the spread, and I am not plugging Zillow.

So this recovery is going to take time.  One must be cautious on the rallys.  Enough is being done to prevent a 80 percent drop from the highs in stock market values, but not early enough to get back to the highs yet.

The EMA ETF Fund NAV was 1159 at the close Friday.

8:10 AM CDT