7/21/2015 – A down day with the Dow Jones down 180 points (-1.00%) and the Nasdaq down 11 points (-0.21%)
I’ll give you just one example. Facebook is now worth more than General Electric
- FB: Market Cap – $ 275 Billion on $13.5 Billion in revenue. P/E = 95
- GE: Market Cap – $270 Billion on $144 Billion in revenue. P/E =17
Still too blind to see the bubble? Fine…..
I often talk about Shille’s S&P P/E being at 27 or at the 3rd highest level in history. Right behind 1929 and 2000 bubble tops. What is it for more speculative indices or stocks out there?
- Russell 2000: P/E of 76
- Google: 32
- Netflix: 205
- Amazon: 171
- Tesla: 79
- Twitter: What earnings?
You get the idea. At least the companies above are somewhat profitable and/or leaders in their respective arenas. That cannot be said for 50-75% of the companies found on the Nasdaq/Russell indices today. And that is during the good time or at the end of this Credit Expansion cycle.
That is to say, I do not see how this is any different from 2000 and 2007 bubble level tops. I was there when it happened and what I saw back then is exactly what I am seeing today. It is as simple as that. And even if market participants end up celebrating Apple’s (AAPL) earnings later today, the laws of physical can only be circumvented for so long.
This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2015-2017. 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 2015-2017 will start (to the day) and its internal composition, please CLICK HERE.
(***Please Note: A bear market might have started already, I am simply not disclosing this information. 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 21st, 2015 InvestWithAlex.com
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