Wall Street Heavyweights Are Sounding Alarm About Stocks

We have been and continue to be extremely concerned about stock market valuations. This is not based on a gut feeling but on demonstrable facts.

There is a massive disconnect between equities and the real economy. We have never seen something quite like this in our professional lives.

Market confidence seems far too optimistic. How can anyone say with a straight face that valuations are justified? The possibility a v shaped economic recovery is extremely remote and those who still believe in a miracle, base that belief on the fact that central banks (led by Federal Reserve) are prepared to increase their indebtedness and purchase debt instruments, and possibly even equities to support these crazy valuations.

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