I believe you will not see a 10% correction in the next 50 years. That is not hyperbole my friend- stocks are now being priced not on fundamentals but on the lack of alternative investments.
Never going under 2000 again for sure, and I doubt we go under 2100 again.
The market is certainly overvalued at over 20 p/e on SPX with record profit margins, but given the Fed may not raise rates for 100 years or more, it means nothing. We are going to Dow 100K in a decade tops, probably much sooner.
I'm talking to more and more seniors who are all in the market, in some cases using margin to juice their returns and make up for lost time.
The Fed, the Fed, the Fed is on fire!
And if rates are 0 for 100 years, the S&P should be something like 5000 right now. See the holes in his logic?
So how does he know the Fed won't keep rates at 0 for 50 years? In that case, his own analysis says stocks are undervalued.
here she comes ya'll. Sell UVXY while it retains a few pennies of gain.
Sentiment: Strong Sell
Sorry, there is no economic recovery and therefore there will not be an increase in rates or a stock market drop.
IMO there is no recovery in the real economy because inflation is 3-4%, not zero.
I'm thinking we see a weak economy, low interest rates, and a thriving stock market for at least 100 years from now.
No question about it, she is absolutely sacrificing the future of this nation. It's as simple or complex as that. She cannot, and will not, raise rates to a reasonable level because the market would crash.
Exactly. That's why I am leveraged long GM, XIV, and some other names. Yellen is 100% committed to this bubble, it cannot be allowed to fail, damage to the real economy is acceptable collateral damage.
There is none. Nobody is going to appreciate a nasty fall in stocks, it would wreck her career. They won't raise to even 2% in the next 50 years.
TVIX will be 1 penny in 18 months.
Which hedge is it? UVXY? TZA? Whatever it is, dump it. You are 100% correct, we won't see over 1% Fed rate for 25-50 years at the outside. Maybe they go to 0.5% at the most.