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IPFS News Link • Stock Market

The S&P500's Valuation Just Surpassed The Dot Com Bubble

• https://www.zerohedge.com, by Tyler Durden

So with the S&P now trading at an all time absolute price and a record high forward P/E multiple, it also means that the S&P500 is now the most disconnected - to the upside - from both the median and average Wall Street target on record, which are 3,200 and 3,198, respectively.

And the cherry on top: with the S&P at 3,550 currently, it is above all but two of the sellside strategist forecasts tracked by Bloomberg, which would be Cantor Fitzgerald, and Goldman, which hiked its price target from 3,000 to 3,600 two weeks ago (the S&P is even above the perpetually cheerful permabull Tom Lee's target of 3,525).

This means that either the S&P will reverse and soon, or we will see a cascade of price target revisions higher - similar to what we have observed with both AAPL and TSLA amid a panicked scramble to upgrade the runaway stocks - into the last quarter as one after another analyst scramble to not end up being the most wrong on where the S&P closes the year, in the process pushing the market ever higher. 

On the other hand, in a world where clueless hacks (either those with a PhD or in front of their Robinhood app) set the price, perhaps it is as simple as this: a trendline which has capped every S&P advance for the past decade.


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