Earning for the S&P are coming in at over $130, above expectations, with every prospect of rising further in coming years. Share buybacks ensure a healthy prices and dividends.
How to price in coming disasters? Unfunded pensions, absurd P/E ratios, a coming lack of central bank liquidity, rising rates, lack of productivity etc etc
Will these factors show up as a lack of confidence, and hold back any recovery following a correction? Probably.
How likely is a correction?
Theres immense correlation between the Fed’s Balance sheet and the S&P 500.
Both the Fed and the EU central bank are making noises about withdrawal of money from the system, This makes a correction a real concern but can we be assured of a recovery?