Share buybacks have permanently distorted US indices. It's not a bubble. If inflation rises so will interest rates. As Peter Costello says CBs are caught in a hotel california. With deflation rampant in Western economies inflation and therefore interest rates will remain permanently at extremely low levels. Possible readjustment of these measures might have to be done by governments and CBs to more accurately reflect the true movements in our economy.
We are witnessing a fundamental market change which should become something else over the decades.
Keywords (good and bad) are growth, deflation, buybacks, negative rates, technology, global warming, property rationalization, pollution, population, CCP, arms race to name a few that will become more apparent in years to come. We aren't going back to the credit fueled bubbles and CB monetary manipulation but rather we are entering a new era that is full of uncertainty.
