I’m sure it’ll be different this time. The Fed has our back. We’ve entered a new paradigm. Forget the 145 years of stock market history. CNBC says it’s always the right time to buy. Buy Amazon at $700. It’s surely going to $1,000. They’ll generate profits any year now.
Stocks are currently valued on a PE basis and Price to Cash Flow basis at higher levels than the 2000 and 2007 peaks. The losses exceeded 50% after those peaks. Someone should tell all the corporate executives that are selling their own stocks as if there is no tomorrow that everything is awesome. Obama and the MSM tell me so. These corporate executives are using shareholder cash to buy back their stock at all-time high prices, while at the same time they are selling their own stock. This is called integrity and high ethical standards in the world we live in. So it goes.
Guest Post by Jesse
Maybe stocks are rather fully valued in expectations of The Recovery™.
Happy days are here again.
For some.
Central Banker’s Joke
Q. How many monetary policy errors does it take to destroy the world’s greatest middle class?
A. How many do you need?
