Bull markets in stocks tend to rise in the face of a wall of worry. For years we have been hearing about this overvalued stock market – it’s lasted too long, risen too far, printing money will lead to inflation, margin debt is too high, we are mirroring the tech bubble of the 1990s… The excuses are endless. The fact is, the global tech sector had a price to earnings (PE) valuation of 50 at the March 2000 peak and today the roaring global tech index is just 18 with a 16% earnings growth rate forecast in 2017.
Today, there are many generals leading the charge beyond US shores. German, French, and British indices are marching to new highs repeatedly in recent months while our Blue Chip S&P 500 and Dow stall. European and most global indexes are behaving like our tech-heavy NASDAQ (QQQ).
While Chinese stocks are in line with US trends, Japanese stocks have surged to new highs this past month as optimism over exports to Europe grow.
This post was published at FinancialSense on 05/24/2017.
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