“…….Here we are in this wonderful new world where everyone values nominal stock prices more than they value the actual output that underlies it. If this indicator isn’t a sign that we are still residing in this Fed driven asset targeting mania then I don’t know what is.
To me, the whole thinking is backwards and more disruptive than anything else, but the party must go on. Lord knows the Fed isn’t taking the punch bowl away any time soon. So drink up. Maybe you’ll get so drunk you’ll sleep through the inevitable bad parts when they arrive.
Chart via Orcam Investment Research:
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