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Shiller CAPE Ratio Highest Since Dot.com Bubble

Earnings Growth
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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.

Shiller CAPE Ratio

Of course, helping the inflated valuations is The Fed.

FANG+ stocks are REALLY accelerating with Fed stimulus.

Shiller CAPE Ratio

With Powell as “the leader of the pack.”

Of course, The Fed can always take valuations higher.

Originally posted on Confounded Interest

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