People will explain this away in various ways but the reality is that throughout history when the yield on the S&P 500 gets to relative extreme lows, forward returns are very poor. The bottom line is that the market is very expensive right now.
The yield can (and probably will) go a bit lower but there are professional analysts like Gene Munster and Dan Ives calling this a “1995 moment” and I’d like to say those analysts are highly regarded.
https://i.redd.it/8aotk15pbr6d1.jpeg
Posted by dkrich
4 Comments
bullish 🚀
This is what [Hussman Funds](https://www.hussmanfunds.com/comment/observations/ob240528/) thinks too. They are a well known bear but it’s difficult to fault their analysis that the risk of low returns over the next 12 years is high, even if nothing is guaranteed of course.
It has been a long time since investors cared about fundamentals. Nowadays investors only care about momentum; can I sell it for a higher price tomorrow then I bought it today.
Dividend does not matter, the value is subtracted to the stock. For normal investors it’s almost pointless.