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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Thu, 11/21/2013 - 16:57 | 4178843 NoDebt
NoDebt's picture

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

Thu, 11/21/2013 - 17:12 | 4178884 Four chan
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. 


Thu, 11/21/2013 - 17:01 | 4178853 Tsar Pointless
Tsar Pointless's picture

History. Isn't that written by the winners?

Thu, 11/21/2013 - 17:07 | 4178868 Joenobody12
Joenobody12's picture

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

Thu, 11/21/2013 - 17:12 | 4178890 JailBank
JailBank's picture

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

Thu, 11/21/2013 - 17:13 | 4178893 sixsigma cygnus...
sixsigma cygnusatratus's picture

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

Thu, 11/21/2013 - 17:29 | 4178946 smcapmachine
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.

Thu, 11/21/2013 - 17:59 | 4179029 Yen Cross
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)


Thu, 11/21/2013 - 18:16 | 4179080 NobleSavage
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...

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