The Fed policy error that should worry investors
By abandoning a systemic framework for monetary policy, the central bank has spawned an all-asset speculative bubble| www.ft.com
By abandoning a systemic framework for monetary policy, the central bank has spawned an all-asset speculative bubble| www.ft.com
Despite the year-to-date decline in the S&P 500, the most reliable valuation measures we monitor remain at levels never observed in market history prior to August 2020. Meanwhile, market internals remain ragged and divergent, suggesting risk-aversion among investors. That combination creates what I've often described as a "trap door" situation. You make friends with bears by understanding them, and by avoiding behavior that will get you eaten.| Hussman Funds
Record stock prices here are the product of a) record valuation multiples that have been inflated by a decade of zero interest rate policy, times b) record earnings that embed distorted profit margins inflated by trillions of dollars of temporary deficit spending. Investors are paying top dollar for top dollar.| Hussman Funds
