Stocks are at an all time high, but some fundamentals don’t seem to justify this. A recent article by The Economist outlined cyclically adjusted price-to-earnings ratio (CAPE) at its highest since 1999. Also it traces some of the profits of the last 10-20 years back to large reductions in corporate taxes. Now with interest rates rising, much of recent hype in the markets being down to AI (a immature technology still to materialize clear business cases beyond its hardware makers) and a dominance of passive investing, I - usually an eternal optimist - am starting to get worried about an impending down turn.
What do you guys think? And if this outlook will materialize, what would be a good investment to secure against a down turn or reap some profits from a switch in sentiment?
Submitted March 13, 2024 at 03:46AM by MoScare https://ift.tt/AepZjCR
