| | | <<Almost the entire amount the PE expansion since 2009 has been due to ongoing QE and the liquidity that has provided.>>
PE has nothing to do with the stock market, especially when we are dealing with companies that are revolutionizing the way we live. Do I need to explain to you how just about every millenial subscribes to NFLX and has no interest whatsoever in AT&T, Time Warner, Charter, etc. I could go on and on. The PE of NFLX is huge because it's a revolutionary company. I can give you the same rationale for AMZN, MSFT, GOOGL, AAPL and FB. And the market agrees with me.
<<So if you are trusting charts to justify a bull market, then you are potentially fighting the Fed or you are trusting the Fed lied about implementing QT, which may be true, but we'll find out in the very short term either way.>>
Markets move in accordance with earnings growth and interest rate spreads. I don't need to hear from the Fed or from their balance sheet what I can gather quicker and easier from charts.
The charts say the Fed is still very friendly and earnings will be very strong.
When the charts show me warning signs, I'll adjust.
You are the one fighting the trend somewhat, not me. |
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