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Based simply on recent PMI levels, Western stock markets are 15-35% overvalued, says Deutsche...

Based simply on recent PMI levels, Western stock markets are 15-35% overvalued, says Deutsche Bank, which believes the Fed's QE∞ and the ECB's OMT have allowed equities a 6-month grace period. If early 2013 economic prints don't start to improve, look for stock markets to give up and adjust downward.
Comments (6)
  • bbro
    , contributor
    Comments (9541) | Send Message
     
    zero hedge...
    4 Dec 2012, 08:40 AM Reply Like
  • Petrarch
    , contributor
    Comments (682) | Send Message
     
    zero sense more likely
    4 Dec 2012, 08:57 AM Reply Like
  • GaltMachine
    , contributor
    Comments (1136) | Send Message
     
    bbro,

     

    The article appears on Zerohedge, the opinion is from Deutsche Bank.
    4 Dec 2012, 11:01 AM Reply Like
  • CaladesiKid2
    , contributor
    Comments (271) | Send Message
     
    Conclusions by Deutsche Bank are consistent with most assessments, therefore a safe 'conclusion'. The difficulty is defining when the stock markets adjust downward. The Federal Reserve continues to feed their money printing habit with promise of even more countries following this fundamentally evil practice. This continued 'snorting of the white powder' continues to support/stimulate the markets. However, this ongoing unrestrained money printing has no historical precedent that ends favorably.
    4 Dec 2012, 08:45 AM Reply Like
  • whidbey
    , contributor
    Comments (3391) | Send Message
     
    We know this estimate, but we also know why the overvalue has occurred. With disinflation a real possibility if US domestic policy does not change, this estimated overvalue may be low. Sentiment is not rational, and it has overly optimistic for two years. The Fed says it will sustain its twist for the unknown future. Corrections yes, reprice the market permanently lower ? No not yet.
    4 Dec 2012, 08:57 AM Reply Like
  • Petrarch
    , contributor
    Comments (682) | Send Message
     
    only the most abject moron would invest based on PMI's

     

    P
    4 Dec 2012, 09:50 AM Reply Like
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