Interesting article. Thanks for posting Arindam. The article prompted me to take a look at the latest market metrics; S&P 500 Index P/E RATIO Forward looking 23.61S&P 500 Index DIV YIELD Forward looking 1.39Figures taken from the WSJ https://www.wsj.com/market-data/stocks/peyieldsSeems like a lot of the companies that are reporting earnings are beating estimates, so there is a good chance that the forward P/E metric might be a bit high. Still though, it seems like the market is certainly frothy. But then again there is TINA (there is no alternative). I would suspect that any kind of market correction of 10% or so would more than likely be met by some pretty strong buying unless something changes (like 10 year treasury yields going higher). Jim
Jim, Thanks for commenting. What I liked about the article is that it took a broader view than usual and tried to provide a context for where we find ourselves today. How much longer the pretense can go on of stock prices being related to genuine economic activity --as opposed to mostly being supported by Fed-supplied liquidity-- is anyone's guess. "What to do in the meanwhile?" as you point out. That's going to vary according to one's means and goals. More to practice green eye shades skills than to turn a profit, I've been poking around in preferreds while waiting for The Big Crash. Arindam
"What to do in the meanwhile?"I'm holding my stock positions. I don't really hardly ever sell any positions (I hold mostly broad based ETFs like the S&P 500, small cap, mid cap, REITs, etc...) I just add to them during big market sell-offs. Like you, I've picked up another preferred or two, namely BAC/PL & WFC/PZ. I've also been adding a couple CEFs. The latest being BSTZ & BCAT. Not getting crazy with it, just modest positions.Jim
10% isn't much of a correction. I think some people are more worried about 20%+ and then a lot of years with poor returns. I am getting close to retirement so I am trying to be a bit careful.
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