Michael_Harding

S&P500 - PE Ratio Growth Similar to 1999 .COM Crash

Short
SPCFD:SPX   S&P 500 Index
The website known as multpl reported that yesterday the Current S&P 500 PE Ratio: 37.37
If you Google search " Multpl " you'll see the website that I'm referring to.

The last time the SPX PE Ratio was this high was back in 1999 when we had the .com crash

If you also use Yahoo Finance as a tool for your decision making process, well unfortunately they report a lot of false data. You can easily discover this simply by looking at their quarterly earnings and then comparing those percentages with the charts here on TradingView.

For Example, if you look up AMD in Yahoo Finance they display that the Current Quarter Estimate (Analysis Tab) has a growth of 43.80%, but in fact if you pull up a chart of AMD here on TradingView and calculate the growth simply with price per share beginning of the quarter (Oct 1) with the current price, it's clear that stock did not grow anywhere close to 43.80%

This applies for many other stocks listed in Yahoo Finance as well.

Sure we have been getting better then expected earnings in 2020 but my point is that if you're using third party tools like Yahoo Finance and looking at the forecasts for next quarter or next year, you might want to be careful you don't invest heavy to later discover the data may very well have been incorrect.

Many large corporations including AAPL are expected to slowdown significantly in the first quarter of 2021. What I wonder is who really wants to take on the unnecessary risk of investing at these highs based off the backs of an artificial economy produced by QE from the Fed ??

Trade Safe - Trade Well

Regards,
Michael Harding 😎 Chief Technical Strategist @ LEFTURN Inc.

RISK DISCLAIMER
Information and opinions contained with this post are for educational purposes and do not constitute trading recommendations. Trading Forex on margin carries a high level of risk and may not be suitable for all investors. Before deciding to invest in Forex you should consider your knowledge, investment objectives, and your risk appetite. Only trade/invest with funds you can afford to lose.
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Comments

Over a couple of standard deviations away . interesting .
Reply
Good Advice. Which asset class do you recommend buying if the S&P 500 is over-valued? ;)
Reply
kishnara tradeBob1
@tradeBob1, None.
Reply
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