Equity markets are extremely overvalued with the median stock even richer now on a price/revenue basis than at the 2000 peak. Stocks are not only overvalued, but they are trading here on record profit margins.
U.S. stocks fell, giving the Standard & Poor’s 500 Index its biggest two-day loss since June, as concern grew that a deadlock among U.S. lawmakers over the debt limit could lead to a government default.
U.S. stocks fell, after the Standard & Poor’s 500 Index dropped to the lowest level in a month, as congressional leaders said the other party must move to resolve the government shutdown and avoid a debt default.
In this age of corporate and sovereign solvency risk, we correspond with Mohamed El-Erian, co-chief investment officer of PIMCO, the world’s largest bond trader, with more than $1 trillion in assets under management