“Markets go up on an escalator, they come down on an elevator. This is the most hideously overvalued market in history.”David StockmanLast week’s action by the Fed was an effort to restore normalcy, but in the context of extraordinary action by the central bank. When you tell markets that the risk free rate is zero, it has profound implications for the cost of debt and equity, and resulting in different asset allocation decisions. Ending this regime also has profound implications for investors.
The post Inflation Trade: AMZN + WFM was originally published at The Wall Street Examiner. Follow the money!