Stock market investors are generally accepting a much lower risk premium paid as a multiple of earnings, and this generally high stock valuation raises financial stability issues, a report from the U.S. Treasury’s Office of Financial Research reveals. Market valuations: Volatility spikes foreshadow more turbulent times Warning that “the volatility spikes in late 2014 and early 2015 may foreshadow more turbulent times ahead,” the government report on financial stability quickly drew upon a risk disclosure. “Although no one can predict the timing of market shocks,” the most difficult of all market events to exactly predict, the report said “we can…
U.S. Treasury Report Rips Market Valuations, Cites "Quicksilver Markets"
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.