ROSENBERG: The S&P 500 Is Nowhere Near Its All-Time High When Priced In Eggs

ROSENBERG: The S&P 500 Is Nowhere Near Its All-Time High When Priced In Eggs

Mamta Badkar | Apr. 9, 2013, 12:27 PM | 3,841 | 7

Stocks hit all-time highs in the first quarter. But many have argued that this has just been driven by central bank easing. In a new report, David Rosenberg quotes Kyle Bass (via Fred Hickey) as saying that stock market gains in real terms are weaker than those in nominal terms. In fact, Bass is quoted saying, “one of the best performing equity markets in the last decades has been Zimbabwe. But now your entire equity portfolio (in Zimbabwe) only buys you three eggs.” Rosenberg says that this made him think about the S&P 500 in egg terms. “While there has been a market recovery, it is far more subdued on this basis … in egg-adjusted terms, the S&P 500 is more than 20 percent below its pre-recession highs and about half what it was at the all-time highs 16 years ago. In milk terms, the S&P 500 is actually 15 percent below its its pre-recession highs, and in bread terms, the index is 10 percent lower. Just in case you thought I was cherry picking what’s on the breakfast table.” To really drive home his point, Rosenberg included a chart that shows the NYSE market capitalization when adjusted for the Fed’ balance sheet is still at 2009 lows.

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (, the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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