Equities have averaged 120% of what our gross domestic product. Typically before 1995 it was always below. But as you can see it has become totally disconnected to the real economy. So The real economy has grown by 2.9% annually since 2000. The equity markets have produced a 14.5% return. That is a massive bubble because asset values ultimately have to be supported by earnings and cash flow and real economics and they cannot diverge consistently from the underlying economy. (01:42–01:49)
CLAIM
Asserts that the real economy has grown by 2.9% annually since 2000.
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