What's Cheap?

[hendi_alex]

When the market is sitting at artificially orchestrated highs, fueled mostly by manipulative Fed. policy, it is pretty easy to see 'expensive' or generally stretched valuations. How much of the expansion of corporate profits is a direct result of the low borrowing costs provided by the Fed? How much of the stretch in valuations comes from yield chasing as the retired community has been forced to take on risk because of non existent returns on Government bonds and CD's? What is going to happen to across the spectrum of risk assets when and if CDs once again start giving traditional yields in the range of inflation plus 1-2%? IMO this market is top heavy for a variety of reasons, and its lofty level is 100% dependent upon the continued punch bowl provided by Uncle Sam.