Monday, November 23, 2009
“We cannot spin a positive story from the fact that a third-of-a-trillion dollars a week is trying to lock down Treasury bill yields of less that 0.05 percent,” Bianco said. “There is still tremendous demand for the front end of the curve despite the fact that people are saying things like there is no yield there and that cash is trash.” -Bloomberg, Nov 23
Add a record shattering S&P 500 P/E ratio of and you get the picture. We sit at the cusp of a massive continuation of the greatest market crash in human history. If P/Es land in their historic recovery range of 6 to 8, the S&P will dip below 50 in the coming decades (assuming companies' earnings stay inflated).
Posted by fdralloveragain at 7:39 PM