2017-12-11 08:42:00 Mon ET
stock market gold oil stock return s&p 500 asset market stabilization asset price fluctuations stocks bonds currencies commodities funds term spreads credit spreads fair value spreads asset investments
Fed Chair Janet Yellen says the current high stock market valuation does not mean overvaluation. A stock market quick fire sale would pose minimal risk to the economy and the macroprudential system. During her final Federal Reserve press conference, Yellen says the prime metrics such as the forward aggregate stock market P/E and P/B ratios are on the high end of historical ranges when the Fed warns that asset prices appear to be high. In fact, the low-interest-rate economic environment is supportive of higher stock prices and home prices. In this context, there is a reasonable balance of financial risks that manifest in the form of less worrisome levels of both bank leverage and private credit growth.
A recent Project Syndicate op-ed article sketches the key reasons for U.S. stock market rational exuberance such as better economic growth with low inflation, monetary and fiscal stimulus, full employment, and higher net income in both the household and corporate sectors. As the world economy skyrockets on all cylinders in America, Europe, and China with robust economic growth since the global financial crisis of 2008-2009, U.S. inflation remains below the 2% target, unemployment is less than 5%, and monetary policy normalization continues at a moderate pace. Federal Reserve shrinks its balance sheet post-QE, finishes the full course of 3 interest rate hikes in 2017, and then expects another around of 3 to 4 rate increases in 2018. The current 7-year uptick in U.S. corporate net income typically precedes the European and Asian counterparts in subsequent episodes. All of these reasons help justify the current Trump stock market rally as rational exuberance and optimism.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2018-12-01 11:37:00 Saturday ET

As the solo author of the books Millionaire Next Door and Richer Than Millionaire, William Danko shares 3 top secrets for *better wealth creation*. True pro
2017-10-15 07:38:00 Sunday ET

Ivanka Trump and Treasury Secretary Steven Mnuchin both press the case for GOP tax legislation as economic relief for the middle-class without substantial t
2020-11-17 08:27:00 Tuesday ET

Management consultants can build sustainable trust-driven client relations through the accelerant curve of business value creation. Alan Weiss (2016)
2019-05-05 10:46:10 Sunday ET

This video collection shows the major features of our AYA fintech network platform for stock market investors: (1) AYA stock market content curation;&nbs
2018-11-27 10:37:00 Tuesday ET

Warren Buffett offloads a few stocks from the Berkshire Hathaway portfolio in mid-November 2018. The latest S.E.C. report shows that the Oracle of Omaha sol
2025-05-29 08:25:28 Thursday ET

Serial venture capitalist Ben Horowitz describes many hard truths, lessons, and insights from his entrepreneurial journey of running LoudCloud from a Silico