Let me take you back to 1990

Podcast: The Noble Update Podcast · George Noble

Opublikowano: 2026-09-29

In June 1990 I told Louis Rukeyser on Wall Street Week that the Japanese bull market was over, and the Nikkei didn’t see its 1989 high again until 2024. The reason was simple: Japanese stocks were still trading at 50 times earnings while their long bonds paid around 7%. A stock at 50 times earnings gives you a 2% earnings yield, and 2% can’t compete with a 7% government bond. In the same interview I warned that any company with a leveraged balance sheet in a cyclical industry could get into trouble, and I singled out the airlines. The recession star...