Dazed and Confused by Valuations?
So, the Federal Reserve and foreigners have ceased buying and Intra-Governmental surplus have been muted by demographic and population shifts...that means nearly $70 billion a month domestically being spent on low yielding Treasury bonds instead of stocks, instead of corporate bonds, instead of RE or CRE. This should represent anti-QE or fiscal tightening. However, in the face of what essentially amounts to billions in monthly tightening of the money supply, assets (excluding commodities, the foundation of all economic activity) are ramping upward?!? Clearly, something else is happening.
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