EDITOR NOTE: FANG stocks are leading the market higher, now closing in on price-to-earnings (PE) ratios unseen since the 2000 Tech Bubble. What’s driving it? Speculation about future tech earnings? Maybe. Speculation about a massive economic recovery despite the pandemic? Sure, some people may believe it. Federal Reserve stimulus? Well, yes, and that’s not a speculation. If you figured that one out, you get a brownie point for seeing past the BS that most investors buy into.
The recent surge in tech stocks (aka, FANG stocks) has resulted in the highest Shiller Cyclically-adjusted Price-to-earnings (CAPE) ratio since the Dot.com bubble of 2000. And overall higher than 1929.
Of course, helping the inflated valuations is The Fed.
FANG+ stocks are REALLY accelerating with Fed stimulus.
With Powell as “the leader of the pack.”
Of course, The Fed can always take valuations higher.
Originally posted on Confounded Interest