Stock Market

Overvaluation

Late Capitalism

the financial phenomenon of our times

The markets are soaring again.

The cyclical reason seems to be an anticipation of a coming period of:
. falling interest rates as the economy is softening
. federal deficits
. lowered corporate tax rates

The secular reason is that the sluggish productive economy doesn’t merit investing in real assets so the money flows into financial assets (stocks, bonds, and real estate). This is long-run insane. The result is egregious over-valuation of financial assets, but it has been the case for the recent short-run late-capitalist period.