On 1 August, according to a Bloomberg story, Alan Greenspan said, “We are experiencing a bubble, not in stock prices but in bond prices. The denominators are future interest rates and the numerator is the future cash flow stream. If bond markets were right about the future, then stock market are wrong in being optimistic about future earnings growth. But if bond markets were wrong, then does that make the stock market less of a bubble, as Greenspan argues? Therefore, if the bond prices are “wrong”, then so are stock prices.

Source: Mint August 07, 2017 18:56 UTC