Every stock market rally is always defined by 5-10 excellent companies that pull up cap-weighted indices like the S&P 500. Notable is that Alphabet, Amazon, Apple, Facebook and Microsoft are collectively up 10 percent this year, while the other 495 S&P 500 companies are down 13 percent. Implicit in the reasoning of Austrians who surely know better is that the Fed engineered this. Indeed, Austrians can’t have it both ways. If they want to tie stock-market health to the tragically small minds at the Fed, they must then agree that the Fed’s various machinations that they take so seriously somehow resulted in the Fed fiddling finding the bluest of blue chips, all the while leaving the blue chips of the past behind. They can't believe this, at which point these very wise people should walk back all their Fed and "money multiplier" theorizing over the years. It's beneath them, and it sullies the name of the great Ludwig von Mises. This is my response to Mark Thornton and Joe Salerno, who took issue with my recent write-up, Where Are All the Austrian Scholars' Yachts?
It can be found here