The s&p will have to show a whopping $200++++++ worth of earnings to get 4500!!!! We will be lucky ifffff the s$p sees at least 140-150!!!
If apple can trade near a 30 p/e with maybe 5% long term growth why can't stocks with 15% growth like msft trade at a 60 p/e and we worth $3 trillion . Were long past looking at any type of valuation metrics . If that were the case we'd have hit 1500 s@p and be back to 2300 tracking earnings if they rise .
I can guarantee you that if these companies grab a $2 $3 or $4 trillion market cap they will say well why can't they be worth $8 $9 or $12 trillion then. Eventually a stock has to be fully valued. You cannot have ludacris market caps that are 1/5 and or 1/4 of the US gdp. Makes absolutely no sense.
Are you telling me whats happened the last 10 weeks makes sense ?Up 47.5% on the S@P after a well deserved 37% move down after a 11 yr bull. Unemployment at best with be 8-10%. When will earnings be back to were they were the past 12 months before the virus? 2 years ? If fundamentals meant anything we'd be at 2300 right now . Its money chasing money and nothing more .
Nothing is making sense and thats the reason I believe markets just keep moving higher. People throwing money at stocks as if there is absolutely nonrisk what so ever. Little donthey know that this euphoria can only last so long. What has happened in only weeks should have occurred over the course of 5 years since on average bear market comebacks take years and not weeks. Fundamentals are completely worthless as nearly half of s&p 500 companies pulled forecasts. Fundamentals and economic numbers will never mean anything when a fed can print as much dollars as they like to keep wallstreet nice and happy.
We've seen this story before. He loads up on triple short etfs then starts whining every day that the market goes against him. The reason is obvious; he goes against trend using instruments meant to be used with trend for short periods of time; also important to cut your losses quickly when you are wrong ( easier said then done given my recent experiences with someone else ).