Bubble Cycle Inefficiency And Valuations

By |2016-03-15T17:32:57-04:00March 15th, 2016|Economy, Federal Reserve/Monetary Policy, Markets|

Last week the Federal Reserve updated its quarterly Financial Accounts of the United States Z1 (formerly Flow of Funds) meaning that we can recheck valuation levels of the stock bubble from alternate points of view (data). The most common valuation given by the report is Tobin’s Q which compares the estimated value of corporate equities (liability) to nonfinancial corporate business [...]