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re: What do we see next, S&P 500 at 6000 or 4000?

Posted on 2/9/24 at 8:37 pm to
Posted by wutangfinancial
Treasure Valley
Member since Sep 2015
11229 posts
Posted on 2/9/24 at 8:37 pm to
Earnings and low rates for whom?

Go look at the Q4 earnings scorecard for the Russell 2000 and explain the price action on the index in that same time period. Indexing has caused a massive amount of price distortion. The equities market has been contracting since the mid 80s. People can’t make sense of it because they think market participants are updating their DCF models daily. That’s not how Wall Street works anymore.
Posted by Big Scrub TX
Member since Dec 2013
33651 posts
Posted on 2/9/24 at 10:53 pm to
quote:

Earnings and low rates for whom?
Just generically talking about the S&P 500. Having P/Es in the low-mid 20s when rates are 3% doesn't seem that crazy to me. It's not like the earnings were fake.
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