Tom Petruno goes through the implications for businesses, investors, travelers, etc…. Very thorough piece, including how much dollar-denominated debts has been issued by non-bank foreign entities ($9 trillion).
Starting valuations matter. Your age alone shouldn’t dictate allocation.
Domestic stocks are expensive and domestic small-caps especially so. High quality stocks (those businesses that can earn a consistently high return on capital over a full cycle and have low debt) are slightly better, but not much. International developed stocks are slightly better, but not much. Emerging markets stocks are the cheapest stocks in the world.
Is Yahoo! cheap? Is Alibaba expensive? Both? Brett Arends discusses. (Click on graphic below for his piece.)
Michael Lewis, reflections on Flash Boys, one year later…..
Henry Blodget says stocks are expensive, and has stopped reinvesting his dividends: