Ruchir Sharma has an interesting op-ed in today’s WSJ. He
observes:
“The Fed can print as
much money as it wants, but it can't control where it goes, and much of it is
finding its way into financial assets. On many long-term metrics, the stock
market is now at levels that fall within the top 10% of valuations recorded
over the past 100 years. The rally in the fixed-income market too is reaching
giddy proportions, particularly for high-yield junk bonds, which are up 150%
since 2009.”