Savvy Trades and Investments

[michael t]

Good post sskillz. I agree with your frustration over valuations. There really is no debate that we have reached extreme valuations. The problem is that we are in a speculative market fueled by relentless central bank liquidity. There will be a day when speculation turns to risk aversion, and then valuations will come back to earth.

No one knows when risk aversion will overtake speculation, but I believe inflation will be the catalyst. I also expect smart money to react to this before it actually shows up in the feds numbers. It wouldn't shock me it this happens far sooner then most people expect.