Markets right now

[SouthernCal_Dem]

6. Exactly right...

The fed purchasing of high yield not only allows risky companies to sell bonds at lower rates than they should be, but hedge funds who own those same bonds turnaround and sell them to the fed, take the cash and buy up stocks chasing the stock market higher.

If you look at stock valuations right now, one could make the argument that the stock market is not only more overvalued now than it was at the all time high in feb, but it’s even more overvalued than the dot com bubble. This is because forward earnings have crashed due to the coming depression. The forward earnings crash is sending p/e valuations higher.

There’s so much money out there and it’s going to all the wrong places. Our economy cannot efficiently allocate capital and give it to the right people.. Everything is broken.