SMLL - Can The Fed Prevent Overvalued Market Leaders From Falling?
For several years, investors have wrestled with a profound dilemma. With Federal Reserve and other substantial government stimulus, stock prices have risen to and remained at valuation levels that have, throughout history, ultimately been severely punished. As the years rolled on and the Fed consistently provided one sort of stimulus or another whenever stocks appeared in danger of a significant decline, investors' confidence grew that the Fed would be there indefinitely whenever serious danger approached. As time passed, stocks moved from higher to even higher levels of overvaluation.
At our various seminars and in commentaries,