Bespoke is out with an interesting study:
Only two other times have we seen Utilities have a higher P/E than Technology. One period came in late 2008 during the financial crisis and the other came during last summer’s version of the Euro-crisis.
See the graph and read the rest of their analysis here.
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Don’t worry, zero interest rate policy has no distortionary effects on the market.
You’re right. That chart is a perfect example of how Fed policy has destroyed the capital markets ability to allocate funds to tomorrow’s winning industries. Somebody copy Bernanke.
the mkt should be left to stand on its own, free mkts crash, but also recover as it adjusts. supply and demand. imo