Biden and the Fed playing 4D chess.As interest rates drop next year, $$$ will be shifted to stocks.
Any investor in it for the long haul will put their assets into the higher potential areas.
The trend is higher and should continue.
Biden and the Fed playing 4D chess.As interest rates drop next year, $$$ will be shifted to stocks.
Any investor in it for the long haul will put their assets into the higher potential areas.
The trend is higher and should continue.
I'm not so sure. Just looking at the average Price to Earnings ratio for the past decades, seems like we are in line and maybe slightly high:
1980s:
1990s:
- Average P/E ratio: 17.2x
- P/E peaked at 25x in 1987 before the Black Monday crash
2000s:
- Average P/E ratio: 24.5x
- The P/E skyrocketed to 44x during the dot-com bubble in the late 1990s, reflecting exuberant investor expectations for tech companies.
2010s:
- Average P/E ratio: 18.1x
- Notable trends:
- The early 2000s saw a decline in P/E due to the dot-com bust and the 9/11 attacks.
2020s (so far):
- Average P/E ratio: 19.5x
- Average P/E ratio: 21.3x (as of December 2023)
- Notable trends:
- The COVID-19 pandemic initially caused a spike in volatility and a dip in P/E
But you said you were comfortable getting 5% risk free. If that comes down to 3%, will people who agree with that still feel the same way? Or move that money into equities?If all that money on the sidelines sat out at 4100, why would you think it's going to come in now at near all time highs?
I'm of the belief way too many people think rate cuts are going to somehow signal the next face ripping bull market. If they cut rates, it's usually because something is breaking. With the lagging effect of rate hikes, that's generally why when they cut, things go to shit.
Majority of so called experts predictions are shooting at 5100 for 2024.If all that money on the sidelines sat out at 4100, why would you think it's going to come in now at near all time highs?
I'm of the belief way too many people think rate cuts are going to somehow signal the next face ripping bull market. If they cut rates, it's usually because something is breaking. With the lagging effect of rate hikes, that's generally why when they cut, things go to shit.
Majority of so called experts predictions are shooting at 5100 for 2024.
8% jump seems relatively conservative, imo.
Doesn't this depend on the ability for companies to keep growing? Most companies have 10 years of growth already priced in. Go look up NVDA's P/E. Where is Apple's growth going to come from? Most companies are pulling back their guidance.But you said you were comfortable getting 5% risk free. If that comes down to 3%, will people who agree with that still feel the same way? Or move that money into equities?
If rates are cut to 3% and the S&P is trading at 5100 by the end of the year, then it is only being propped up because inflation has reaccelerated and the Fed has all but admitted defeat.But you said you were comfortable getting 5% risk free. If that comes down to 3%, will people who agree with that still feel the same way? Or move that money into equities?
Curious if anyone has changed their thoughts about the market.
S&P went right up to all time highs in December but has fallen to start the year. Is this a normal pullback, or the start of a new bear trend?
FOMC mtg will be interesting today.
Inflation going back up. Rate cuts are coming any day now.
The Fed can't cut rates and a lot of companies are about to roll their debt with these rates. It could get ugly.
3% to 1.5%? MadnessHalf the Dow's gains this year wiped out in 1 day.
JFC. Please stay on the porch.Half the Dow's gains this year wiped out in 1 day.
It was tongue in cheek.JFC. Please stay on the porch.
Worst day in 11 months. Good entry point for longs.JFC. Please stay on the porch.
Inflation going back up. Rate cuts are coming any day now.
The Fed can't cut rates and a lot of companies are about to roll their debt with these rates. It could get ugly.
Not what the Radical Right wants to see.
You had me until Bernie and The Squad. Really weird twist. Be happy with the gains and less on crazy fringe politics and your life will be exponentially better.Twenty percent of my net worth is in Nvidia. Jensen Huang is one of the greatest innovators of all time. He should be getting more praise for making the world a better place. People seem to think that Bernie Sanders and The Squad are making the world a better place but in reality they’re just pure evil. Huang is giving people a sense of purpose and prosperity in life. He is a wonderful and inspiring person.
I made this post 6/30 of 2023. S and P 500 was at 4450.S and P at 5200 by end of year.
It could very well be fleeting but damn, my 401k is up 9.7% on the year, not accounting for contributions.I made this post 6/30 of 2023. S and P 500 was at 4450.
Today, we are over 5200. Missed it by less than 3 months.
I remain the man.
NVDA is still up for the day. CAVA was down around 6% but buyers have stepped in and now it’s only down around 2%
For your encore can you tell us when to sell?I made this post 6/30 of 2023. S and P 500 was at 4450.
Today, we are over 5200. Missed it by less than 3 months.
I remain the man.