“Against other asset classes, equities look really cheap,” said Barry Knapp, head of U.S. equity strategy for Barclays in New York. “It could mean that we’re completely wrong on the inflation outlook, which means it’s going to get much worse, much faster. Or it could mean that stocks are decidedly cheap and people are overly cautious.”
via Bloomberg
If one walks into a Mercedes Benz showroom, there will always be a model that will look "cheap" in comparison to the more expensive ones.
And today's sobering quote:
"Wall Street seems to have no concept at all that every bit of growth we've observed over the past year can be traced to government deficit spending, with zero private sector expansion when those deficits are factored out."
And today's sobering quote:
"Wall Street seems to have no concept at all that every bit of growth we've observed over the past year can be traced to government deficit spending, with zero private sector expansion when those deficits are factored out."
John Hussman
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