Financial Times/David Crnevali and Eric Platt/12-6-2020
“We are in the seventh inning of Federal Reserve-supported equity markets.” – David Donabedian, CIBC Private Wealth Management
USAGOLD note: That statement about covers it. The stock market is not moving on value but Federal Reserve largesse. The high stock valuations, as this article point out, are based on current readings for the Shiller Cape ratio which is at the same levels now as it was in 1929, but still shy of the record high in 1999 just before the dot.com crash.
