Heard some guy on Varney’s show today on Fox Business say that stock prices are still 40% overvalued, and housing prices are a good 30% too high. I think that’s about right.
Rick free rates are used in calculating security prices (Capital Asset Pricing Model) so its likely that there’s more downside from here IMHO. Basically, costs for businesses rising means earnings falling. Not to mention ongoing supply chain problems and rising labor and input costs.
There may be a brief burst of optimism in the market around the election in the expectation that the Pubbies will slow down Biden’s destructive pace. It will prove to be false hope.