S&P 500 now trades at a P/E greater than 25 and is currently the second most overvalued (the dotcom bubble in 2000 being the first), which begs the question – Have the markets been manipulated and setup for a decade of underperformance? Has the Fed pulled future gains into the present already?

“By holding short-term interest rates near zero for seven years, the Federal Reserve has encouraged malinvestment and speculation while punishing saving, in the process creating massive market distortions and imbalances.”

More at: Prometheus Market Insight


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s