A week and a half ago, the Federal Reserve (the Fed) announced a third series of measures for quantitative easing or “QE3”.
A recent article appearing in the Financial Times caught our eye—or perhaps we should say ear. At first glance it was unremarkable—just one among dozens of recent think pieces suggesting that investors were losing interest in stocks as markets around the world continued to stagnate.
Last week the Dow broke 17,000. Even the small-cap index, the Russell 2000, notched a new high, illustrating the breadth of this healthy bull market. The NASDAQ, believe it or not, is less than 15 percent away from the record set in the crazy dot-com era market of 2000. Yet valuations are not even close to the extremes of those days.