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

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