WILL THE FINANCIAL MARKETS SURVIVE YEAR END RE-BALANCING?

The FED Santa pdf

Table 1.14 annual 1955-2018 Spreadsheet

 

THE EMPLOYMENT DATA, WALL STREET AND THE TRADE WAR.

November 2019 P to E ratios vs rate of profit pdf (ARTICLE)

GRAPH Payrolls vs Aggregate Hours (spreadsheet)

Table 1.14 1996 up to Q3 2019 (spreadsheet)

HUSSMAN FUNDS DEC 2019 PDF (attachment)

 

Answers often raise additional questions. On reflection, the coincidental results when comparing the divergence of P/E ratios and the actual rate of profit to the divergences obtained by more superficial means, such as discounted cash flow, may have revealed a hitherto unknown connection. It may turn out that it is the actual underlying rate of profit that is shaping and giving definition to discounted cash flows. In other words a rising rate of profit will boost future discounted cash flows while a collapsed rate of profit will in turn collapse the cash flow. More research is warranted.

THE TRADE WAR JUST TURNED NASTY.

trade war takes a nasty turn pdf

THE LABOUR PARTY MANIFESTO: For the many while preserving the few!

FOR THE MANY AND THE FEW pdf

WHY WAGES CAN AND NEED TO BE SET INTERNATIONALLY.

market value, prices of production, value of labour power PDF

SHOULD THE VALUE OF LABOUR POWER BE SET NATIONALLY OR INTERNATIONALLY?

super exploitation pdf

DOMESTIC INDUSTRY cash flow vs investment + graph (spreadsheet)

 

Please replace the second paragraph on page three with the following one.

Here Roberts and Carchedi make a serious error. Prices of production, that is the movement of capital between industries to equalise the rate of profit, does not apply within an industry. It does not apply between the auto companies in Mexico, the USA or China because they are part of one industry. Here market value applies which sets the floor for the cost price of cars, with the volume of production and hence the selling price being set by the movement of capital between this industry and others in pursuit of profit.

(In my linking of market value to selling price instead of cost price, the role played by the prior movement of capital in determining the selling price and hence the rate of profit for the industry, is obscured. The corrections are in italic. The original formulation degraded the relation between market value and market prices of production.)

COMPARING PRICE TO EARNINGS RATIOS, TO THE RATE OF PROFIT (1996-2018)

Comparing Price Earnings Ratios to Capital Profit ratios

 

This brief article should be read in conjunction with the previous article. Yet another reason to abandon historical cost when measuring the rate of profit.