Apple Becomes First Company to Hit $3 Trillion Market Value

[Amishman]

6. Market is extremely frothy

Shiller P/E is higher than the Black Tuesday crash of 1929 and close to that of the dot com crash. Stocks are badly overvalued relative to the actual revenue of the companies.

The Fed's reverse repo market hit 1.9 trillion recently. This is excess capital reserves of major financial companies that they are simply parking short term because they can't find better ways to lend or invest it. Buyers are willing to overpay for stocks because there are few better places to invest right now.