What is spooking so many investors about the current equity market rally? One can barely go a day or two without some expert drawing attention to an impending disaster.
The value brigade is deeply unhappy they cannot buy anything as valuations have become stretched. These value cynics are also deeply concerned about the huge scale of share buybacks and the accompanying increase in debt levels among big US corporates. Momentum-driven investors, by contrast, worry about the slowing pace of earnings growth and subdued volatility. Bond investors also mutter darkly about another consumer boom in debt and the near certainty the Fed will withdraw monetary pump priming, and warn deflation is about to run riot in the eurozone. This cacophony of cauti...
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