Topic: Why has the s&p500 already made a full recovery? - page 3. (Read 422 times)
The bubble is quite spectacular. I'm not sure if the investors/speculators/kids-with-robinhood-accounts believe that the pandemic will be defeated promptly, or that the economy will quickly shift from in-person services to online, but I'd give it until around election time. If it doesn't crash by then I will give up and join the pumper cult and buy $10k worth of Tesla stock (if one share still costs less than $10k at that time).
The US stock market (in my own opinion) is extremely overvalued, and yes I do think that a not insignificant proportion of US residents deposited their stimulus checks right into their brokerage accounts and used the money to speculate/invest/whatever you want to call it. If you look on Youtube, there are all sorts of videos about Robinhood customers and all the profits they've recently made. It isn't likely they bought stocks that are components of the DAX or the FTSE, but they might very well have bought stocks in the S&P 500.
I watch the stock market constantly even though I don't have a lot of skin in the game, and I'd say a day of reckoning is coming for the US indexes. Why? Because the prices of the stocks in them have been being inflated for over a decade by low interest rates, rampant money printing, and now stimulus checks. I'm not sure what the P/E average is for the S&P 500, but I'd imagine it's really high.
Anyway, stock prices right now are not reflecting the health of the economy IMO. Everything is in bizarro land, and that's why gold and silver and bitcoin are looking attractive to investors at the moment.
It is overestimated, but the fact is that the traditional market does not necessarily follow and be connected to the current economic situation in the world and often and almost always goes the opposite of what most expect. I watch the stock market constantly even though I don't have a lot of skin in the game, and I'd say a day of reckoning is coming for the US indexes. Why? Because the prices of the stocks in them have been being inflated for over a decade by low interest rates, rampant money printing, and now stimulus checks. I'm not sure what the P/E average is for the S&P 500, but I'd imagine it's really high.
Anyway, stock prices right now are not reflecting the health of the economy IMO. Everything is in bizarro land, and that's why gold and silver and bitcoin are looking attractive to investors at the moment.
I watch the stock market constantly even though I don't have a lot of skin in the game, and I'd say a day of reckoning is coming for the US indexes. Why? Because the prices of the stocks in them have been being inflated for over a decade by low interest rates, rampant money printing, and now stimulus checks. I'm not sure what the P/E average is for the S&P 500, but I'd imagine it's really high.
The pe average of the s&p500 published by vanguard was 26 before the crash - I assume its probably still around there.
The UK ftse 100 is at a 16 pe ratio for comparison and I think high cap Europe remains around 15 (at least in the west).
A lot of this is looking like a last ditch attempt for the US to stay on top, I don't think the money printing is going to stop for a while - it might be unnecessary but the US economy already looks like it has a very high amount of money flowing through it compared with other country (due to healthcare premiums and the tax system to name a few).
The US stock market (in my own opinion) is extremely overvalued, and yes I do think that a not insignificant proportion of US residents deposited their stimulus checks right into their brokerage accounts and used the money to speculate/invest/whatever you want to call it. If you look on Youtube, there are all sorts of videos about Robinhood customers and all the profits they've recently made. It isn't likely they bought stocks that are components of the DAX or the FTSE, but they might very well have bought stocks in the S&P 500.
I watch the stock market constantly even though I don't have a lot of skin in the game, and I'd say a day of reckoning is coming for the US indexes. Why? Because the prices of the stocks in them have been being inflated for over a decade by low interest rates, rampant money printing, and now stimulus checks. I'm not sure what the P/E average is for the S&P 500, but I'd imagine it's really high.
Anyway, stock prices right now are not reflecting the health of the economy IMO. Everything is in bizarro land, and that's why gold and silver and bitcoin are looking attractive to investors at the moment.
I watch the stock market constantly even though I don't have a lot of skin in the game, and I'd say a day of reckoning is coming for the US indexes. Why? Because the prices of the stocks in them have been being inflated for over a decade by low interest rates, rampant money printing, and now stimulus checks. I'm not sure what the P/E average is for the S&P 500, but I'd imagine it's really high.
Anyway, stock prices right now are not reflecting the health of the economy IMO. Everything is in bizarro land, and that's why gold and silver and bitcoin are looking attractive to investors at the moment.
I was just looking at the comparisons of the charts between the dax, uk ftse and s&p500 and it looks like the S&P has has majorly outperformed the others but I'm trying to work out why?
A lot of people seem to think consumers are buying more from larger companies and less from smaller ones and the US government seemed to be doing it's best to bailout everything other countries were competing on (afaik) against it - like they normally do. But it seems weird that part of the market has already fully recovered even though the pandemic is set to continue for quite a while. Did people just deposit their cheques from the government straight into the stock market? Are companies doing buybacks still with their own rescue packages? Or do people wait for a crash before they start investing...
A lot of people seem to think consumers are buying more from larger companies and less from smaller ones and the US government seemed to be doing it's best to bailout everything other countries were competing on (afaik) against it - like they normally do. But it seems weird that part of the market has already fully recovered even though the pandemic is set to continue for quite a while. Did people just deposit their cheques from the government straight into the stock market? Are companies doing buybacks still with their own rescue packages? Or do people wait for a crash before they start investing...
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