How Palos Passes Judgment on, Makes Assessments of, and Forecasts Stock Market Returns Over the short term, stock prices can from to time run far-away above or below fair value. However, over the fullness of time, price stability, economic growth and monetary policy are the three main fuels that propel stock market returns. In this connection, it is crucial, with the use of metrics, to numerically define what fair value is, and what constitutes price stability, causes economic growth and determines monetary policy.

A Long Way Off From Normalization The roles of interest rates are manifold. The crucial ones are:

  THEY STILL DON’T GET IT: “Fewer workers are needed today IN MOST BUSINESSES.” Too many people just cannot understand this fact or refuse to accept it! I have written for six years that less people are required for the production of goods and services. Fewer people are needed in most industries today. More is done by less! The 1960’s term “replaced by a computer” is so true today. High technology and robotics have replaced people. No matter what industry we examine, less people are required for it to function-from underground mining operations to the floors of the stock exchanges. This will continue to have an enormous impact on employment levels. The point is that most people are not indispensable.