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 projections on stocks based on key U.S. demographic shifts. “The retirement of the baby boomers is expected to severely cut U.S. stock values in the near future,” economic research from the San Francisco Fed proclaimed.  The…