The New CS Board

[jumanji0881]

Fed Warns "Asset Prices Are Vulnerable" If Risk Appetite Declines : https://www.zerohedge.com/markets/fed-warns-asset-prices-are-vulnerable-if-risk-appetite-declines

My Comment : Not to worry. When stocks start to correct, the Fed will step in to prevent it.

Excerpt:
Vulnerabilities associated with elevated risk appetite are rising. Valuations across a range of asset classes have continued to rise from levels that were already elevated late last year. Equity indices are setting new highs, equity prices relative to forecasts of earnings are near the top of their historical distribution, and the appetite for risk has increased broadly, as the "meme stock" episode demonstrated. Corporate bond markets are also seeing elevated risk appetite, and the spreads of lower quality speculative-grade bonds relative to Treasury yields are among the tightest we have seen historically. The combination of stretched valuations with very high levels of corporate indebtedness bear watching because of the potential to amplify the effects of a re-pricing event.