The NY Times had another article on bubbles and equity markets. This has become a recurring theme in any discussion of equities these days. Is there truth to this view? The data suggests that we are at elevated levels of valuation and when that happens forward returns usually end in the lower tail of the distribution.
There may not be a crash but you should not live off of gains that will never occur. Valuations can go higher in a low rate environment but the margin of safety is much lower than what was seen just two or three years ago.
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