Quote:
Originally Posted by chassis
Here is an SP500 p/e chart over time. Today's market is valued in the same range as the 1990s. Seems not too scary. Do you agree?
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The stock buyback may distort the PE ratio if compared to past PE ratio. One thing we should be concerned is that the market has been so sensitive to FED rate change. It's like if a person is so sensitive to changes in the weather, then he may not be in good health - just like the market is probably not in good shape.
As mentioned previously, people have been talking about corporate debt - including Janet Yellen and also in Powell press conference last week. Nobody really know how sensitive they are to market down turn.
I feel like a lot of the so called "gig economy" companies don't really make any money and I would assume they have a lot of debts. And a lot of these companies rely on the "cloud" and software companies and if they fall it will lead to a domino affect that is hard to predict. There have been a lot of hype on the so called "software" companies.
After last Friday market fall, it will be interesting to see what will happen next week.