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The Fed treats investors like ‘foolish children’ by propping up stocks despite ‘dreadful fundamentals,’

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MarketWatch/Shawn Langlois/8-1-2020

pencil sketch of Seth Klarman“Investors are being infantilized by the relentless Federal Reserve activity. It’s as if the Fed considers them foolish children, unable to rationally set the prices of securities so it must intervene. When the market has a tantrum, the benevolent Fed has a soothing yet enabling response.” – Seth Klarman, Blaupost Group

 

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