Maserati wrote:
Thanks for that. I never short directly, nor would I short the SP over that time. It must be supported to keep pensions/401k’s afloat. And as has been shown, it CAN be supported, even in the face of seemingly impossible resistance.
Not something I would recommend to anyone. Just answering the question. Pretty simple really. Market cap to GDP for domestic equities highest ever. Regardless who gets in power, taxes are going up. Employment will remain challenged. Fed programs pushing on a string. Domestic equity investors delusional on future returns. Fundamentals will realign as they have for thousands of years. S&P 500 fair value based on current projected EPS is under 1,500. A further decline to EPS and resulting compression of multiple will likely take the index to 1,100.