Market Commentary

At the this time (the end of 2020) the stock market seems to be overpriced. That is, PE levels are at the high end of their historic range. This is probably due to excessive liquidity injected into the economic system from  efforts by Congress and the Federal Reserve to save the economy from the economic slowdown due to the pandemic. The cash has to be invested somewhere and the best investment at the moment is in the stock market, particularly with low inflation.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s