Not sure I'm getting this. Seems to me the writer, Fatas, is arguing against himself. His thesis seems quite logical, the market is high because interest rates available in bonds, savings, money markets, government agencies etc are all low. The result is market investors look to equities that pay several percent dividends or forward P/Es in the single or low double digits. But then Fatas calls that a "bubble".
I suppose like everything else it gets down to timing. If the banks SLOWLY remove the foot from the accelerator the "bubble" , if it exists, slowly disappears. A radical change ...remember the Fed discount rate of 14% in 1980, and lots of years well above 5%? A quick return to those numbers would certainly turn the stock market on its head.
Hoping for a gentle touch...
I suppose like everything else it gets down to timing. If the banks SLOWLY remove the foot from the accelerator the "bubble" , if it exists, slowly disappears. A radical change ...remember the Fed discount rate of 14% in 1980, and lots of years well above 5%? A quick return to those numbers would certainly turn the stock market on its head.
Hoping for a gentle touch...