Saturday, October 22, 2016

Party Like It's 1999 x 2008...

In a staggering deja vu of Y2K, AT&T just agreed to buy Time Warner for $80 billion. AOL's takeover of Time Warner at the Y2K peak in February 2000 was the greatest market timing move of all time, as AOL's bubble valuation crashed immediately thereafter...

First, some context...

This is the U.S. stock market adjusted for Federal debt and inflation with the Labor Farce Non-Participation rate:

This is corporate profits baselined to GDP aka. "Shock Doctrine":

First the Y2K part:

Time Warner (I drew in the buyout price pending Monday open).

AT&T just paid a 100% premium over where the stock was trading this past February...





Now the 2008 part:

Lockheed Martin


Y2K x 2008 = 2016