Chris, you have a lot more expertise in equity markets than I do, and you’ve made a couple of smart calls, so I listen carefully when you give advice to the fellow Piggs.
I have to admit I am dumbfounded by the rise in equity markets since March. They appear to be levitating well above the underlying economics.
But I am curious. What do you think of the argument, made by Paul Krugman and others, that the world is still awash in excess savings? If that were true, couldn’t that lead to equity values well above what they “should” be based on traditional measures of fundamental value, together with very low interest rates? I am not trying to start a tired endless debate here. I am just curious what you think.
