Stocks Are 2007 Level Overvalued
If as so many pundits believe, the Fed is going to imminently ease then that would mean stocks are 2007 level overvalued relative to Treasury bonds on an earnings yield basis. See the chart below which shows the 10 year yield - the S&P 500 yield.
Which means there will be a MASSIVE rotation out of stocks into bonds by real money while small time gamblers are told that low rates are bullish.
Because the only way that big money gets out at the top is when home gamers are buying.
It's called "distribution".
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