This could be really, really bad. The man who warned against stocks with nearly four unbelievable full years of bull bull BULL lying ahead has perhaps rung the bell at the top.
Greenspan: No 'Irrational Exuberance' in Stocks Now
That's a bad enough headline to stop here. But let's not...
Greenspan said in a " Squawk Box " interview that stocks by historical standards are "significantly undervalued" even considering the recent moves higher. He added that the payroll tax increase didn't dent spending because of rising asset prices.
OK. Meanwhile, at end-January prices, Jeremy Grantham's model had as its central tendency that US stocks were priced to slightly lag anticipated 2.2% annual price inflation every year (on average) for the next seven years. But that was at lower prices.
Grantham has a better track record than the Maestro. But of course prior success doesn't guarantee future results, etc. So we shall see.
But with BlackRock reporting that its iShares ETF that tracks the Russell 2000 (NYSEARCA:IWM) trading near 30X trailing earnings (taking into account all the money-losing members of the R2K that Russell conveniently ignores), I think that the IWM is the Q's of our day. Woof!