Bubble, Bubble, Fraud And Trouble – S&P 500 Most Overvalued Ever

(Note:  apologies to Shakespeare for my blog title)

We can certainly see a 2008-like market crash because “the bigger this bubble gets, the bigger the burst…I am looking at a bubble that is almost sure to pop at some time and I don’t know when it’s going to happen, but I know it’s going to happen.  - this quote and the one below sourced from Zerohedge.com

The Fed and the U.S. Treasury (via its Working Group on Financial Markets) – collectively known as the Plunge Protection Team – have created both stock and bond market bubbles of unprecedented magnitude.  I think the only market professionals who refuse to acknowledge this are the highly inappropriate hosts and Wall Street guests that have infested the media like ebola has infested West Africa.

But a constant source of irritation for me is the fact that analysts, and even respected market professionals like Julian Robertson, erroneously reference the current stock market (S&P 500) p/e ratio in comparison to historical points in time.   The latest example is Roberston’s appearance on Fox Business.

Robertson’s commented about the bubbles that have been methodically blown by the PPT:

The thing that worries me the most are the twin bubbles [stocks, bonds] that are developing, certainly the Federal Reserve, the people that run their Treasury operations, are trying to create a bubble in bonds and they are doing it.

You can read the rest of this here:   Investment Research Dynamics