All markets have been mis-priced due to years of credit based money and low interest rate policy. Assets are over-valued and the market participants still think the Fed will bail them out and reflate those assets after the crash. This won’t happen because Powell is ending the Fed put and will allow prices to naturally adjust accordingly to market demand.
I'm very new to this - can you explain what is meant by the markets being mispriced (e.g. what markets, and mispriced relative to what)? Thanks...
All markets have been mis-priced due to years of credit based money and low interest rate policy. Assets are over-valued and the market participants still think the Fed will bail them out and reflate those assets after the crash. This won’t happen because Powell is ending the Fed put and will allow prices to naturally adjust accordingly to market demand.
Knowing how to value companies is now king. The resting-upon-laurels easy money is over.