Guest Post: QE's Economic Miss & Future Valuation Overshoot

Tyler Durden's picture

Submitted by Lance Roberts of STA Wealth Management,

 

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NoDebt's picture

If the Fed has removed all risk what P/E ratio would be too high?

Four chan's picture

its on purpose, the system called the fed reserve is designed for this and over 100 years it has been a great success. 

enslave a free peoples to debt and capture every asset through boom and bust the system creates from debt created out of thin air. 

TREASON

Tsar Pointless's picture

History. Isn't that written by the winners?

Joenobody12's picture

C'mon, the market is simply pricing equity in 2023 dollars. 

JailBank's picture

Well fuck it I am just going to try to win the Powerball!

sixsigma cygnusatratus's picture

Someday soon, the road can will be full of cement.  Then the fun begins.

smcapmachine's picture

it's a hell of a lot worse if you puss out and sit out the entire equity bull market of the past few years, then get smacked in the face with 5%+ inflation beginning in 2015.   You'll be retiring at age 90.

Yen Cross's picture

  Great comment. These pinheads assume low or NO inflation. The fucking cost of food, insurance, services, commodities, clothing are going up parabolically as a result of this out of control money printing. Where are the earnings supposed to come from? Look at the size of the 'Free Shit Army" already..

   The treasury printed $425 billion last month to pay back extraordinary measures and finance the last two months of 2013. They are going to print over $1 trillion in the first 2 months of 2014 to pay off debt/bonds that are rolling off and to finance the economy. That's before the debt ceiling debate even gets fired up again. (there's no debt cap in place currently)

 

NobleSavage's picture

This trend will likely continue (coming from a bear that has had a "knockout"). Next year there will be some tapering but the big headline will be how much and how often (eg 84bln vs 85bln, even months only, etc.) I miss the risk-on risk-off swings from 2 yrs ago...