A chart worth looking at.

[Torus34]

As the federal government adds more and more money to the US economy and maintains a very low rate of interest, one of the effects is an increasing stock market p/e ratio. More money going into stocks ups the value without necessarily improving earnings. There's a historical chart of the DJIA p/e ratio at: https://www.macrotrends.net/2577/sp-500-pe-ratio-price-to-earnings-chart

It's easily seen that only twice before in the 90 years covered by the chart has the p/e ratio been as high or higher than it is now. The precipitous drops which ended those peaks are at least amusing.

Regards, stay safe 'n well. [Ed.: 'n solvent.]

 

[Allan]

The market tends to be forward looking and some heavy hitters like Amazon have huge p/e ratios as a result. And that's how we got the dot.com bubble.

 

[Torus34]

The market tends to be forward looking and some heavy hitters like Amazon have huge p/e ratios as a result. And that's how we got the dot.com bubble.

Hi!

I've no idea of when the denouement of this particular cycle will occur, but I'm afraid that some of the little guys will sustain real, hurtful losses.

Best to you and yours.

 

[Waddy]

the stock market is already in a bubble. Lots of cheap money with no where to go; so it flows into the stock market. Inflation at work. You also see it now in home prices and even car prices. Seen the sticker prices on new pickups lately?