Stocks are expensive, and nobody cares

We’ve reached an alarming, albeit entertaining, stage of any stock market rally: Motivated reasoning and justification. Not only are well-known bears capitulating, but banks are publishing research notes about how this time is really really different, which we’ve heard is always a good sign.

If you compare the S&P 500’s price to its free cash flows, it doesn’t look quite so expensive, UBS points out: The bank is correct in arguing that large-cap companies have become more tech-heavy and “capital light” over the past two decades, meaning they generate more cash per dollar of sales: Could this trend ever change? It’s tough to say what the future may bring, especially when it comes to external pressure on US companies to spend more on heavier industry and domestic manufacturing.

Nederland Laatste Nieuws, Nederland Headlines

Similar News:Je kunt ook nieuwsberichten lezen die vergelijkbaar zijn met deze die we uit andere nieuwsbronnen hebben verzameld.

Why Trump’s election will not tank European defence stocksEurope still has decades of under-investment in security to address
Bron: FT - 🏆 113. / 51 Lees verder »

Lithium stocks on the move northPossibility is that early movers are getting set after yet another producer ‘optimises’ production
Bron: MiningOnline - 🏆 117. / 51 Lees verder »

Hong Kong stocks fall as China’s stimulus package disappointsHang Seng index down 1.5% after Beijing unveils $1.4tn plan to restructure local government debt but no consumer support
Bron: ftenergy - 🏆 47. / 63 Lees verder »

High-street store stocks £35 handbag that’s identical to £3,000 Dior Saddle bag...
Bron: TheSun - 🏆 64. / 61 Lees verder »

Chinese stocks jump after leaders pledge to loosen monetary policyCSI 300 benchmark opens 3.3% higher a day after politburo vows ‘unconventional’ measures to boost growth
Bron: FT - 🏆 113. / 51 Lees verder »