FYI: Valuations across most asset classes are at the highest levels they have ever been, according to AQR.
Stocks and bonds, particularly in the US, are in the top 85th percentile of historic levels, said AQR founding principal Cliff Asness at a briefing in London on Thursday. He also warned: “I don’t know of any large liquid asset class that’s not expensive.”
Regards,
Ted
http://www.ai-cio.com/print.aspx?id=2147489788
Comments
(http://krugman.blogs.nytimes.com/)
Nobody Understands the Liquidity Trap, Cliff Asness Edition
Cliff Asness, one of the signers of the infamous open letter warning Ben Bernanke that his policies risked debasing the dollar, weighs in with a complaint that I am being a big meanie. As Brad DeLong immediately notes, what Asness mainly ends up doing is showing that he doesn’t at all get the whole notion of the liquidity trap, and the resulting irrelevance of monetary expansion to both prices and output.
Clearly, Asness has never read anything at all on the subject — not what I’ve written, not what Mike Woodford has written, not what Ben Bernanke has written. And he seems to view the failure of inflation to follow from quantitative easing as some sort of weird coincidence, not what anyone who applied basic macroeconomics to the situation predicted.
Now, I understand that busy people can’t keep track of everything, and even that you can sometimes be a successful money manager without reading up on monetary economics. But if you’re one of those people who don’t have time to understand the monetary debate, I have a simple piece of advice: *Don’t lecture the chairman of the Fed on monetary policy.*
No it doesn't help but shows like that can expose the person. The watcher can make up his or her mind if the guest is real or playing to the media.
It is kind of like reality shows which I hate intensely. Some of those people are obviously playing to the camera. The reality part comes into question too