Posted by sbaxman111 on 6th of Oct 2017 at 01:51 pm
Today, it is SocGen's turn to follow up on what we said, and in a
report from SocGen's Arthur van Slooten, the strategist writes that
"while traditional inflation measures may not call for aggressive
tightening,
we believe high valuation (e.g. cyclically adjusted price-earnings,
or CAPE, multiples above 30x) is a sign of inflation in financial
assets that is hard to miss
.
This is the elephant in the room."
Keep in mind, If tax reform passed with proposed corp rates,
s&p 500 eps could double and the market would look cheap. I am
skeptical that a deal passes but that's a large reason we keep
grinding higher.
ZH- CAPE LEVELS
Posted by sbaxman111 on 6th of Oct 2017 at 01:51 pm
Today, it is SocGen's turn to follow up on what we said, and in a report from SocGen's Arthur van Slooten, the strategist writes that "while traditional inflation measures may not call for aggressive tightening, we believe high valuation (e.g. cyclically adjusted price-earnings, or CAPE, multiples above 30x) is a sign of inflation in financial assets that is hard to miss . This is the elephant in the room."
Slooten then slams the vol-selling activity of central banks, pointing out that "high valuation was supported by the drop in volatility, but now that volatility has reached near-historical low levels, further drops may even be dangerous. This situation would not have existed without the unprecedented liquidity support from central bankers over the last few year. "
Keep in mind, If tax
Posted by jdaswani on 6th of Oct 2017 at 02:37 pm
Keep in mind, If tax reform passed with proposed corp rates, s&p 500 eps could double and the market would look cheap. I am skeptical that a deal passes but that's a large reason we keep grinding higher.
wow- makes sense
Posted by arun on 6th of Oct 2017 at 02:26 pm
wow- makes sense