1.Earnings Yield vs Cash Rate -- should we be concerned?
Historically
>> Low/negative = bad
>> High/positive = good $.SPX(.SPX)$ $SPDR S&P 500 ETF Trust(SPY)$
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2.Valuation Heights
This is a big problem — not just because of the direct implications of this (lower expected returns, risk of downside)
…but rather because of 1987 vs 2000
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3.Lessons from the past...
While the internet would go on to become ubiquitous and a source of tremendous wealth and innovation -- at the height of the dot com bubble it was pure Hype at that stage... certainly relative to the valuations prevailing at that time.
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