Monday, March 18, 2013
Asset Bubble, Bond Bubble, Is the Fed OOC?
Interesting discussion on Bloomberg. Check out this short video if you can stand watching these guys interrupt each other, especially Pento.
Wesbury makes the point no one on this panel disputes that PE ratios are not in the stratosphere. Pento does not think current market strength supports forward PE's (what I got trying to follow the conversation with all the interruptions) and that market conditions are going to finally cut into profits. Other analysts not on this panel (Hussman, for example) say the Shiller PE ratio is too high. With everyone believing treasury bonds are in a bubble does that mean they are the best contrary play right now?