Sure, low yield rate alone doesn’t justify the extremely high valuation of NASDAQ, but many investors may have overlooked other factors that may have contributed to NDX's rise.
Quick recap of recent macro events-
Corporate profits in the United States dropped 11.8 percent to USD 1,569.2 billion in the second half of 2020, following a downwardly...
Quick one here, given the world looks set to resume it's ludicrous experiment with negative rates in order to spur "growth" and encourage spending.
I thought it was only reasonable to see what effect the past decade of ZIRP (Zero Interest Rate Policy) has had on the personal savings rate.
Before we begin, i understand that the fed funds rate is not the explicit...
#spx #sp500 #fedfundrate - The Federal Reserve lowered the Federal Fund Rate today from 1.5% to 1% in the first rate cut outside of an FOMC meeting since Lehman Brothers collapsed in 2008. This came as the Federal Reserve Chairman, Jerome Powell, claimed that the economy is doing fine and unemployment is at a multi-decade low. If everything is so “fine”, then...
- Top left = SPX
- Bottom left = Initial jobless claims (unemployment metric)
- Top right = US 10 year and US 2 year spread (Yield curve inversion metric)
- Bottom right = Fed funds rate (short-term interest rates)
It is no secret that US equities are grossly overvalued, from Warren Buffet to Stanley Druckenmiller to Ray Dalio, the smart money has made...