Nah, Market is fine. Just computer trading
Based on valuation, Fed monetary policy and competitive bond yields the market is okay.
The forward looking P/E of the S&P 500 is about 16.4, which is near the average. Really no need to worry until it hits the 22 range which indicates excess speculation.
The yield on the 1 year T-Bill is still less that the yield on a 10 year T-bill and the real inflation adjusted Federal Funds rate is less than 2.5% so no sign of recession or declining earnings.
The 10 year treasury is less than 4.5% so we aren't seeing a shift away from stocks towards fixed income.
Stay the course. These are all minor hicups in the grand scheme.
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In response to this post by `lag)
Posted: 12/17/2018 at 12:42PM