Do not buy tickets to Mars – it will disappoint.

Posted by Bill Blain

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Tesla’s taken a bit of spanking this week in 10% volatile up/down market. Maybe it was the $5 bln cheeky stock sale, or long-term holder Baillie Gifford taking profits? Does that mean it’s now a “buy”? If you think so – shouldn’t you have gone back to school this week? Its a bubble stock and at some point (I suspect sooner than later): the lower Tesla goes, the lower Tesla will go… 

Meanwhile… back in the real world…

Let me start by saying I’m not a Japan expert – just an observer. As Prime Minister Shinzo Abe fades into retirement, I wonder if the Japanese economy might provide some insights into what’s in store for Europe and the US?

Recently, a number of analysts have described Japan as a warning from history. Its an interesting perspective – but I suspect a somewhat flawed one. Japan has problems – Europe’s are likely to prove much worse.

The perception is Japan’s decades of lost growth since 1991 – despite negative real interest rates and the longest sustained period of monetary experimentation in the form of QE -highlights that artificially low rates and too much debt will repress economic growth.

Lessons from Japan