3 replies to this topic

[slupert]

2021 Q1 Earnings Results: Still Massively Overvalued and Who Cares? | DecisionPoint | StockCharts.com

[Rich]

Perhaps the "traditional valuation measures" don't tell the entire story.  I think interest rates help explain what is going on here.

See:   https://www.markettrak.com/safety.html

Rich

[da_cheif]

Perhaps the "traditional valuation measures" don't tell the entire story.  I think interest rates help explain what is going on here.

See:   https://www.markettrak.com/safety.html

>Perhaps the "traditional valuation measures" don't tell the entire story.<    ...have they ever...675ono

Edited by da_cheif, 04 July 2021 - 10:47 AM.

[OEXCHAOS]

Look, I can borrow money very cheaply, do a "buy-write" program, with a futures hedge and easily cover the cost of carry. What's really big money, with fantastic programming and technical power going to do? Especially when they can borrow at 12 basis points?

 

This interest rate situation is fascinating. It's hard to get your brain around the effects. Relatively modest moves in long rates translates to fairly dramatic price moves in real estate, for instance. To our minds, nothing has changed much over the past 3-4 months, but a home buyer can afford ~20% more house than in March.

This type of leverage can be dangerous, but there's no denying that it's going to drive the economy and stocks so long as it lasts.

 

M