San Francisco Fed Says Stock P/E Ratios Could Be Cut In Half

The statement coming from the Federal Reserve Bank (Fed) of San Francisco might come as a shock to stock market perma-bulls, but certain hedge fund players won’t be surprised, as it’s all part of a mathematical modeling of where this economy could be heading. Updating their previous economic projections, the central bank researchers are nearly cutting in half the forward looking price / earnings ratio . . .

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