The Global Central Bankers Christmas Gift to the Financial Gambler’s World! Liquidity Driven Mania: Global Stocks, Tesla and Bitcoin!
Federal Reserve Chairman Jerome Powell (December 16) Rev.com: If you look at PEs, they’re historically high. But in a world where the risk-free rate is going to be low for a sustained period, the equity premium, which is really the reward you get for taking equity risk, would be what you’d look at. And that’s not at incredibly low levels, which would mean that they’re not overpriced in that sense. Admittedly, PEs are high, but that’s maybe not as relevant in a world where we think the 10 year treasury is going to be lower than it’s been historically from a return perspective. We also look at borrowing leverage of financial institutions.
Rings a bell?
This time is different, ala Irving Fisher?
Again, from Charlie Bilello (December 19):
Wall Street Week...
1. Stocks: all-time highs
2. Home prices: all-time highs
3. Corporate bond yields: all-time lows
4. Mortgage rates: all-time lows
5. Jerome Powell @ FOMC Meeting: we need many more years of 0% rates and bond buying to juice the markets & increase inflation.
In charts!
The Global Central Bank liquidity Driven Bubbles
Sources: Link, link, and link.
Oh, Tesla!
Bitcoin!
Sources: Link, link, and link.
The Global Central banker’s Christmas Gift to the Financial Speculator’s world!
Sources: Hedgeye link and link
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