Assets...............................

From CNBC and Inside Wealth comes an essay seeking to explain the new highs in the stock market. Key excerpt here:

Global asset reflation. That may sound technical, but economists say that the somewhat baffling rise in U.S. stocks can be best explained by looking at asset values more broadly around the world. The river of money coursing around the globe is now approaching the flood stage, fed by a downpour of cash from the Federal Reserve and now from the Bank of Japan.

All that cash is searching for a home, and unlike water, cash tends to seek higher ground rather than the lowest. So all of the world's cash is pouring into higher quality assets with little concern for underlying values or economic fundamentals.

I like his language.  The essay includes stamps, famous letters, and collectibles as "higher quality assets."  Wish I had some of those to sell.  "Reflation" instead of inflation indicates were are heading back into bubble-land.  What could possibly go wrong?

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