GR-NEAM Reflections: 01/01/2014 - The Power of Belief

With their choices limited, the U.S. central bank has effectively made stock market inflation an instrument of monetary policy. The gleeful response of investors has produced valuations that are unattractive. The central bank already lost control of the bond market in 2013. Such an event in the stock market becomes more likely, the more elevated prices become.

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Market valuation update: