THE BORE
General => The Superdeep Borehole => Topic started by: ToxicAdam on October 15, 2020, 09:45:39 AM
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https://www.cnbc.com/2020/10/15/smead-nightmare-us-stock-valuations-driven-by-young-dumb-investors.html
Much of the market rally which took the U.S. benchmark from correction territory in March to an all-time high in August was driven by tech megastocks and a bullish options market.
“The buying that went on in August and September is a 10-year phenomenon the likes of which we have never seen, among millennials and in the risk-taking among people that don’t want to own bonds and want to own overpriced U.S. quality businesses, it is of record proportions,” Smead told CNBC’s “Squawk Box Europe” on Thursday.
At present, investors are paying 22 times forward earnings to purchase stocks on the S&P 500, 50% higher than the 10-year average valuations across the index.
Gen-X never did this in the late 90's. :spiders
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:pika
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Durr, bond yields are low, credit spreads are tight, property prices are high.. So, why reference precedent of the past? Stupid to use old math in a world that's been driven to extremes by fiscal expansion from the CB. Wait until this goof sees the entire index get replaced by infinite P/E SaaS companies. :rejoice
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r/wallstreetbets :trumps