It will be virtually impossible for some of the U.S. stock market’s largest companies to grow fast enough to justify their current valuations.
To illustrate, Deluard analyzed the 351 companies within the Russell 3000 index RUA, -0.05% that trade for more than 10 times sales. That’s much higher than the market as a whole; the S&P 500’s SPX, -0.08% price-to-sales ratio is 3.0. Deluard generously assumed that these companies’ revenue will grow by a factor of 54 over the next 17 years —equivalent to 26% annualized. He further assumed that, at the end of those 17 years, their price-to-sales ratios would be 6.4-to-1.
Given the increasingly “winner-take-all” U.S. economy, it is in fact most unlikely that there will be many MAGA-like stocks in 2038. After all, the four current MAGA stocks represent around 20% of the total market cap of the S&P 500. These 59 emerging MAGA stocks’ combined market cap in 2038 would therefore be larger than the overall market under any realistic assumptions of the equity market’s performance over the next 17 years.
This is the same guy who predicted the big meltdown from June 2020 to Sept 2020. He’s wrong on everything. Almost comical if it wasn’t so Sad.
Yeah but that’s where our great manipulators come into picture … they will keep growing fast, bubbles will be created, they will burst and then again they all make new highs 💪💪💪
Hey treehcapital it’s like ‘contrarian’ thinking is spreading 🤔
Can’t you just sell us a vacuum cleaner instead?
good
Stocks are worth as much as someone is willing to pay for. The new system. Lol
$AAPL 126 LONG