Prepare for a S&P500 bubble of unprecedented proportions
While it is hard to imagine the stock market boom right now, its on the cards before the US election. With massive money printing throughout the world, there is 50 Trillion dollars trying to find a home and there is only one place for that money to go and seek a meaningfull return - the US stock market. Everything else is exhausted. The S&P500 is being driven by a handfull of key hi tech stocks that are showing themselves even after the dumb panic selling last month.
The catalyst for the whip lash response is the Covid 19 and its rapid dissapearance due to hotter weather, Remdesivir to manage death rates and a successful T-cell vaccine trial. Add in the slush of excess cash poured into middle class pockets with mortgage refinancing and zero interest loans now being taken out by many companies and you have all the ingredients for and explosive upside move in the S&P500. The Shiller PE fair value is currently 24.5 and could reasonably be double that fair value with the 10 year yield at a meagre 0.61%.
I'm calling 4000 on the S&P 500 before the election and this is reflected in the chart.
The catalyst for the whip lash response is the Covid 19 and its rapid dissapearance due to hotter weather, Remdesivir to manage death rates and a successful T-cell vaccine trial. Add in the slush of excess cash poured into middle class pockets with mortgage refinancing and zero interest loans now being taken out by many companies and you have all the ingredients for and explosive upside move in the S&P500. The Shiller PE fair value is currently 24.5 and could reasonably be double that fair value with the 10 year yield at a meagre 0.61%.
I'm calling 4000 on the S&P 500 before the election and this is reflected in the chart.