Fear the Stock Market’s Exuberance, Not the Economy

Note: A case of the flu kept me down all of last week, but I am now recovering. As such, Fed watching has been on the slow side lately. 

This rally in equities could be described as “frothy,” but that might not be a sufficiently strong adjective. These days often feel like the late 1990s, when it seemed any company that added “dot-com” to its name was instantly rewarded by investors, even if the label amounted to little more than putting lipstick on a pig. That phenomenon isn’t entirely unlike the bounce in Kodak’s stock price after the company announced the launch of its own cryptocurrency.

It feels like we have been here before, and it didn’t end well for the economy. Will this time be the same?

Continued on Bloomberg Prophets….