Stock markets, in the United States especially, have become bubbles that refuse to burst or liquidity lakes that refuse to drain even as vitality leaks from the global economy. What is with this death-defying quality that many equity (and bond) markets appear to have taken on?Analysts are generally agreed that equity valuations are “stretched”. Some stocks in the S&P 500 index are trading at near double their historic price-to-earnings multiple while corporate earnings in the US and elsewhere…
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