Market Overvaluation…

Stock price overvaluations seem to be on everyone’s radar these days. All the Guru’s that have amassed huge fortunes over the past 40 years are now in a quandary as the guideposts tell them to get out of the market, yet the market just keeps groping higher.

I believe everything they say is true, even the Motley Fool is piling on, the problem is that the driving force behind what we are seeing has never been witnessed before, and that is that currently the core power of the rise in prices is growing government debt and increasing inequality which sees money moving to the investor class away from the worker class. That liquidity trickles down into stock prices. This will end when politics forces it to, not when valuation reaches some “CAPE” number. More than likely a younger group of leaders, younger than the Boomer Politicians who have built huge fortunes, will turn the tide at some point.