@zachcoelius Using historical benchmarks, is there support for these valuations? No. On the other hand, what's an investor's choice?
a) Sit in cash to protect from downside and earn less than inflation.
b) Buy fixed income which yields will remain depressed; or
c) Invest in public equities.
a) Sit in cash to protect from downside and earn less than inflation.
b) Buy fixed income which yields will remain depressed; or
c) Invest in public equities.
@zachcoelius Sovereign wealth funds (only buy global currencies) have no viable alternate choice but to keep buying USD treasuries vs yuan or euros. Will keep bond prices high/yields low. Pair with long-term low interest rates/low inflation, plus stimulus focused on middle class and....
@zachcoelius ...economy reopening with vaccinated population, plus velocity of money increasing and we are coiled to witness the biggest public equity boom in our lifetimes and, most likely, the best since the 1930s with FDR's The New Deal that ushered in "The Golden Age" in America.
@zachcoelius $$ in hands of few, drives hyperinflation in rich assets: stocks, real estate, art, planes, boats. Its equity vs fixed income. With bond yields at historical lows, the stock market just has to outperform bonds and inflation. Its the safest and smart bet with unbound optionality.
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