Seven Lean Years

This morning Ms Yellen is on deck to pontificate. Yet another idiot savant. Can run numbers, but understands nothing.

The bubble continues to inflate as bullish sentiment sucks in more and more retail buyers and Wall Street quietly withdraws. The fear of being “left behind” isn’t limited to Christian fundamentalists, that’s for sure.  Hussman and GMO both foresee negative returns out to seven years – seven very lean years, I suspect.

Of course, extremes can always extend. Let us hope this doesn’t get any worse. But Ms Yellen’s lack of useful analysis doesn’t provide much hope as she essentially promises to be a beardless Bernanke.

Valuation measures don’t suggest asset prices are in bubble territory or outside of normal historical ranges.

No? Following chart thanks to John Hussman

There’s none so blind as those who will not see.

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