A mixed day with the Dow Jones up 20 points (+0.12%) and the Nasdaq down 1 points (-0.02%).
While the market continues to put most traders/investors into a deep state of trance, the chart above should give them a swift kick in the ass. At least in theory. Among other things, it clearly shows that forward P/E for the S&P is now officially higher than it was back in 2007. And while some will stop there, I will not.
You see, the E in P/E has been massively diluted over the last 5 years by the FED, massive capital infusion, QE, etc….Creating “fake or pay it forward” earnings for all of the corporate America. So much so that if we make make certain adjustments and take that monstrous/artificial liquidity out, the real P/E is likely to be above 40. Making today’s market incredibly overpriced. This is exactly what happened in 2008 when corporate earnings collapsed and the S&P P/E ratio briefly jumped over 100.
So, – 49%, -57% and -??% to complete our 2000-2017 secular bear market.
This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2014-2017. In fact, when it starts it will very quickly retrace most of the gains accrued over the last few years. If you would be interested in learning when the bear market of 2014-2017 will start (to the day) and its internal composition, please CLICK HERE
(***Please Note: Due to my obligations to my Subscribers I am unable to provide you with more exact forecasts. In fact, I am being “Wishy Washy” at best with my FREE daily updates here. If you would be interested in exact forecasts, dates, times and precise daily coverage, please Click Here). Daily Stock Market Update. July 2nd, 2014 InvestWithAlex.com
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