At the heart of the stupendous financial bubble fostered by the Fed and its caravan of central bank money-printers from around the planet is a simple proposition: Namely, that interest rates on the benchmark US Treasury and related blue chip bonds are ultra-low, so PE multiples are justifiably wafting high in the nose-bleed section of history, divorced from common sense rules of financial valuation because of, well, TINA.
That is to say, “there is no alternative”, so close your eyes and buy the present value of a risk-adjusted earnings stream which cannot possibly justify its purchase price. But no matter. Prices will keep going up because, like beanstalks, that’s what stonks do.
Investing has finally been reduced to trusting in the Fed, the monetary father almighty, creator of rising asset prices on Wall Street and everlasting prosperity on main street. If stock prices should falter lower, by no later than the third day they shall arise again, ascending skyward to reward the quick (bullish speculators) and dispatch the dead (bearish nonbelievers), world without end.