Posted on 07/12/2023 7:35:54 AM PDT by millenial4freedom
The stock market is overvalued, and it's not just the tech sector that appears stretched, according to JPMorgan's chief global market strategist Marko Kolanovic.
The S&P 500's forward price-to-earnings ratio is currently 19.4x, and when you back out tech and AI stocks, the remaining 65% of the index trades at 17.4x, according to Kolanovic. That's not cheap, as the historical forward P/E of the index is 15.3x, meaning that current valuations represent a 10% premium.
"FOMO is in full swing, there is complacency being built into stocks with VIX at the lows of its range," Kolanovic said in a Monday note. The CBOE Volatility Index, better known as Wall Street's fear gauge, traded just below 15 on Tuesday, and was as low as 13 last week.
(Excerpt) Read more at msn.com ...
Buy Low sell High
I assume JP Morgan thinks we need an active investment solution?
Listen to Jim Cramer.........................................theh do the opposite..................
There are the factors of rapid technological change and foreign (EU+) anti-Big Tech policies.
Also, many profit margins are quite high. They might not hold.
“FOMO”
I’ve been trained over the years to remember that the pain of loss is worse than the pain of missing out.
A booming stock market can boost corporate profits as shareholders and other people spend more.
At some point, the boom reachs a max and shareholders and other people spend somewhat less.
The economy has a built-in instability that can lead to a bust.
So, what magnanimous reason does JP have for giving this valuable information? Could it be that they are trying to create a short sell opportunity? Nah. They wouldn’t do that.
Also, at least in the South DOMTA seems to be prevailing and prices continue to rise. The ΔP value is rising as well to no one’s surprise
A 10% or even 20% correction is not the end of the world. Over time, the markets will recover and then eventually soar to new heights.
Excessive exuberance
Don’t go by the pundits. Their guess is as good as yours. They are all in it to make money.
FOMO means fear of missing out.
Selling off my nasdeq mutual fund today while it’s finally green.
It’s been crap since President Retard seized power and screwed up the economy
Fidelity money market funds paying 4.76%
I’ll park it right there
Gotta wonder - Is the market rising or the currency falling?
4.76%? So you’re only losing 10% value per year to real inflation. Where’s that gonna put you in 20 years?
I invest in oil. They can talk all the S they wan’t but they ain’t getting away from it.
The good ones deliver 20+% yoy.
Look for shortages and supply spikes.
Electricity is good too.
Trust No One
I said park it - not forget about it. The market has tanked for several years I’ll take my guaranteed 4.76% and reinvest
I live completely off my dividends. I sell nothing at a loss. It’s works great for me
I retired at 52. I have no need or desire to chase high risk investments especially commodities when I can easily live off part of my monthly dividends
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