My latest RAGE Gauge™ is in, and let’s just get something straight right off the bat—a good economy does not mean a good stock market. Sure, stock prices are up thanks to government stimulus checks funding Robinhood and other brokerages’ accounts. But higher prices don’t create anything other than higher valuations. At the end of the day, increasing the “P” in Price/Earnings doesn’t do squat for earnings.
The S&P 500 is at its lowest yield in 15-years and the Fed Funds rate is almost zero and is less than zero after inflation. Stocks can go up for as long as there continues to be buyers. But serious investors be warned: stocks have already dropped by over 30% three times in this young century. What’s most shocking of the three market CRACKS is how fast and furious last year’s was—it basically came out of nowhere. Stay tuned. But only if you’re serious.
E.J. Smith - Your Survival Guy
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