- High PE ratios do not signal an overvalued equity market.
- Multiples are high because bond yields are low.
- Bond yields are not artificially depressed by the Fed’s bond-buying.
- Bond yields are likely to remain low, given the inflation outlook.
“The reality is that unconventional monetary policy is difficult, perceived as risky, and never pursued with the vigor of conventional monetary policy.” --Paul Krugman, NYT, March 17, 2010 "Reducing policy interest rates to the zero bound fails to stimulate credit supply and demand in a ‘balance sheet recession’ in which the private sector is deleveraging." --Adair Turner, 20 May, 2013