1: Another sign of market excess: Junk bond real yields at record lows
Imagine lending to a risky company and allowing them to repay you less than what you lent them when adjusting for inflation. That’s basically what people are doing here.
2: Where did the American family go?
For a range of possible reasons, the segment of the American population that is married with kids is shrinking. Demographics, delayed marriages, the cost of raising children and pessimism about the future are all contributing factors to this decline.
3: Large cap stocks are more expensive
The price-to-earnings ratios for small cap (S&P 600) and mid cap (S&P 400) stocks are considerably lower than large cap (S&P 500) stocks.
4: Fine wine vs stocks
Since 1988, you would have made more money investing in fine wines versus the S&P 500 index. Of course, the challenge for us mere mortals is that building a wine portfolio is neither practical nor cost-effective.