, almost all economic activity passed through their corporate coffers generating reams of cash flow and attracting huge investment flows.
The valuation question is by far the biggest risk to the index, not only because the Nasdaq is trading at a nosebleed level of nearly 40 times trailing earnings but because that valuation has been justified by the ultra-low interest rates that have capped the benchmarkHowever, the bond market dynamics have changed. With President-elect Biden and a Democratic majority in Congress, the markets are anticipating a massive new stimulus bill of nearly $2 trillion.
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