A rarely offered observation by Jerome Powell underscores one of the stock market’s biggest risks.
Key Points
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Although the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite have outpaced all other asset classes over the last century, periods of heightened volatility and declines are perfectly normal.
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Rare commentary about equity valuations from the head of the Federal Reserve raises serious concerns about a historically pricey stock market.
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One valuation tool, with an immaculate track record dating back to the start of 1871, foreshadows a significant drop in Wall Street’s major stock indexes.
