US10Yr Over 100x P/E, SPX 16x Pricy?; Sanity Check Please

There’s a great deal of consternation that the stock market reacted poorly to the “surprise” Federal Reserve 50 basis points interest rate cut last Tuesday. The cut was said to be ineffective. Well, there are few things wrong with that headline.

First, it wasn’t a surprise to veteran investors or folks who read this newsletter. We pointed out as much the previous Friday. Secondly, because markets are a discounting machine it was the nearly 5% equity rise on Monday which was the “...

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