JEPI - A Good Response To A Bad Situation

• Today, investors are so uncomfortable with near-zero bond market valuations that they've priced nearly every other asset class at levels that can be expected to produce near-zero, or negative, 10-12 year returns as well.
• Low interest rates tend to go hand-in-hand with high stock market valuations and high interest rates tend to go hand-in-hand with low stock market valuations.
• The problem with "correcting" valuations for that regularity is that it implies that both obscenely elevated prices and wildly depressed prices are equivalent "fair value" situations.
• I'm content to have a neutral near-term outlook. Still, I think it's an utterly awful idea to imagine that these valuation extremes are somehow "justified" by anything other than a desire to jump on the bandwagon.

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