ok so let me ask you more directly since you cant seem to make up your mind
I made up my mind: you're definitely an idiot.
have financial firms done this and has it caused stock prices to go up? and does it make stock prices overvalued?
Obviously financial firms borrow from money markets to make investments in capital markets. And increased demand (through purchases, genius) will cause stock prices to increase. Easy credit can increase demand.
That does not, inherently, make stocks overvalued. Stocks are overvalued when their market price is not in line with fundamentals. I do think they're slightly overvalued because stocks are almost always overvalued at some point in time. That's why market corrections happen.
when was the last 10% correction and how many have happened in the last 5 years? I'll give you a hint. not many. and any "corrections" that have occurred, were quickly reversed back to all time highs almost immediately. you sure you want to continue making stuff up?
If they happen annually, then they will occur 5 times over a 5 year period, you twit. There has not been a market correction in 3 years. Another reason why some think the next one will be slightly larger than the typical 10%.
And yes, who could have guessed that a stock's valuation can change! Wowie, what magic is this! Fundamentals change. Businesses expand. Equity shares change in value! Oh man, it's almost like there is a market that has information coming on the assets or something.
I dont think you even know what a correction is. and I'm the halfwit? got it.
I explained what it was. Instead of attacking like an idiot, tell me where my explanation is wrong.
I'll repeat it. my argument is that fed policy (as well as the 27 other central banks that have cut rates or launched or increased QE in 2015 alone) has overvalued stocks and asset prices.
Stocks are assets, halfwit. Stop being redundant and start providing evidence for your claims.
yes it does.
What sound reasoning. What a failure of a trader.
yes it does. its not my problem you either have no clue how to read it, if you even bothered at all.
With your awe-inspiring chart that has bubble territory written on it. Make way quantitative finance research, we have a real winner on our hands.