Stocks up in 14 of past 15 weeks for the best run since 1972
Maybe only a recession will create an actual dip in the stock market, at this rate.
Credit the buoyancy to technology megacaps such as Meta Platforms Inc. and Microsoft Corp., whose enormous cash piles and profits have combined with the AI boom to draw investors of all stripes. The cohort known as Magnificent Seven — also including Apple, Amazon.com, Alphabet, Nvidia and Tesla — reigned the market in 2023 and has since continued to shine.
The S&P 500 At 24 times reported earnings, the index’s multiple already eclipses pre-pandemic highs, approaching levels seen at the last bull market’s peak.
The Magnificent Seven is twice as expensive.
“Everybody that invested in tech in 1998, 1999 was a hero until they were not.”
Bloomberg 9 February 2024
Early Friday stock-index futures trading indicate the S&P 500 will start the session several points above the 5,000 mark.
Breaching — and closing above — big round numbers in equity indices inevitably encourages optimists to hope that what was considered resistance can become support.
Today’s valuations may be stretched at 22 times trailing twelve month earnings, but that’s well below the 28 times seen at the Y2K/dot-com bubble top.
MarketWatch 9 February 2024
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