Valuation-Informed Indexing #470: The Economic Crisis Did Not End, It Has Been in Remission

I’ve posted Entry #470 to my weekly Valuation-Informed Indexing column at the Value Walk site. It’s called The Economic Crisis Did Not End, It Has Been in Remission.

Juicy Excerpt: So the economic crisis never really ended. It went into remission. If the economy was booming with stock prices at reasonable levels, we could take comfort that good times really had returned. But I don’t feel able to trust a recovery that is financed by an overpriced stock market. Overpriced stocks makes us feel that it is safe to spend again. But the financial security pushing spending forward is illusory. There is no “there” there when stock prices could fall to fair-value levels at any moment and trillions of dollars of spending power could be taken off the table again.