There is some narrative I hear that makes me puzzle on how people can still be so positive on the S&P .
I feel the bull are just betting on a devaluation of the US dollar and not the growth of corporations .
Smell like Japan Nikkei 1989 .
https://www.federalreserve.gov/econr...ck-returns.htm
Quote:
Lower interest expenses and corporate tax rates mechanically explain over 40 percent of the real growth in corporate profits from 1989 to 2019.
I heard in other video the entire US office real estate value equal or even below the apple stock by itself !
And people expect to go higher how exactly ?
Interest rates keep going up .
Tax certainly won’t go down .
QE will happens solely when the gains from QE will be lowered then the lost of the S&P I imagine .
How can people borrow to increase consumption, they already drowning under debts ?
While u have 5% free risk in treasuries shrug .
I just don’t get it how this can’t be a top .