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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Bonefish who wrote (1182094)	12/3/2019 9:06:45 AM
From: sylvester80	Read Replies (1) \| Respond to of 1572905

DOW near the level it was 2 YEARS AGO!!!! HAHAHAHAHAHAHAHAHAH... BEND OVER LOSERS... I TOLD U SO!!!!! BWAHAHAHAHAHAHAHAHAHAHAHAHAHAA

To: Bonefish who wrote (1182094)	12/3/2019 9:09:56 AM
From: sylvester80	Respond to of 1572905

OOPS! The Stock Market’s 25% Gain Is Totally Due To Higher Valuations And Not Earnings Chuck JonesSenior Contributor forbes.com The S&P 500 closed at 3,141 on Friday, up 634 points for the year or 25.3%. Over the same 11 months the Dow 30 has risen 4,724 points or 20.3% to 28,051. When you compare these gains vs. the S&P 500 earnings being slightly down for 2018, all the increase has come from investors valuing the earnings at a higher multiple. S&P 500 STOCKCHARTS.COMWhile earnings have been flat valuations have risen At the beginning of the year FactSet’s analysis had the S&P 500 earnings to be approximately $174 for 2019. The S&P 500’s P/E multiple on its forward earnings was 14.4x. As of last week the S&P’s 2019 earnings estimate had fallen to $162.84 (compared to $161.45 in 2018), down 6.4%, which has increased the S&P 500’s current P/E multiple to 19.3x. S&P 500 EPS FACTSET Today In: Money The decrease in earnings has been driven by lower profit margins since revenues have increased in the low-single digits. Overall the lower margins have offset the increase in revenues. S&P 500 net profit margins Over 2019 the S&P 500’s forward P/E multiple has risen from about 14.4x to 17.6x. To account for the decrease in the P/E multiple from the current 19.3x analysts are expecting almost a 10% increase in earnings next year to $178.70. S&P 500 EPS FACTSETWhile the forward 17.6x P/E multiple is higher than the 10-year average, as time goes by, and if the multiple does not appreciably decrease, the 10-year average will creep up to the 5-year average. S&P 500 Forward 12-month P/E multiple FACTSET2019’s rallying cry has been “Don’t Fight The Fed” As 2018 ended investors were concerned that the economy could enter a recession sooner rather than later, driven by the Fed’s four rate increases in 2018 and what, if any, outcome could come from Trump’s trade war with China. Fed Chairman Powell announced on December 19, 2018, that while the Fed Funds rate was increasing to 2.5%, this would be the last rate increase, at least for a while. The market’s initial rebound in 2019 was probably more due to recession fears easing and “knowing” that the Fed had stopped tightening certainly helped. There have been various ebbs and flows regarding the China trade war over the year, but overall this has been more of a drag on the market and business investment than a positive. Then over the course of 2019 the Fed has lowered the Fed Fund rates three times. It also announced in September that it would start to increase its balance sheet, reversing a trend started in earnest in 2018. As the Fed has lowered rates and pumped money into the financial system investors have looked to equities for better returns. Federal Reserve balance sheet