Today both major stock market indices finished at record highs again. I know that I covered this in my last post, but the Shiller PE is now at 32.91. That means investors are paying $33 to get $1 of earnings! The median Shiller PE ratio is 16.15. Holy cow the market is in crazy land.
The bond market tried to sell off a couple of times today, but it was bid higher because they have to keep interest rates low. The US dollar actually rallied for most of the day, and is currently over 92. This put some pressure on precious metals gold and silver which had previously been soaring. I still believe that the long term trend for the dollar is down. The Fed minutes advertised three rate hikes during 2018, but it will be difficult considering they haven’t hit their inflation targets in a long time.
Bitcoin is still hovering around $15,000 as it tries to gain some traction following the drop to $13,000. We will continue to keep a close eye on bitcoin, the bond market, and the US Dollar.