Chris Pavese on the disconnect between stock prices and economic fundamentals

While the many oddities within the market are puzzling enough, the most striking aberration is the gap between asset prices and economic fundamentals. To paraphrase Jeremy Grantham, today’s market is valued at levels only seen maybe 10% of the time, while the economy is bouncing around at recessionary levels only seen maybe 10% of the time.

~ Christopher Pavese, CIO of Broyhill Asset Management, The Broyhill Letter, August 2020