growser7

Sobering Stat: ARMS Index Indicates Market Is at Peak, Not Bottom

Why do we always insist that the March lows priced in the utter collapse of the US economy? An SP 500 of 660 is perhaps fair valuation for an index with earnings of 50-60 facing the headwinds of a deleveraged economy with marginal growth ahead for the next 3-4 years (or longer).

What is not being priced in is the fact that inflation and Fed rates are as low as they can go. Unless we believe that these rates are the new order of the universe, they will go up, and pull equity valuations down.