Delete comment from: Captain Capitalism
I agree there is a demand side issue. I think there is a significant amount of valuation problems being created by the fed.
When the Fed is insane, the CAPM model is inflationary.
Look at the freakout when the fed signals it MAY raise interest rates. with no increase in earnings, raising the risk free rate raises the discount rate, which lowers stock prices. Which lowers finance managers bonuses, and we can't have that (sarcasm).
Mar 11, 2014, 1:18:46 PM
Posted to The Stock Market is NOT the Economy