We are hosting a webinar with CEO Keith McCullough on Tuesday, November 14th at 10:30 a.m. Below is commentary from a recent Hedgeye video with McCullough as a teaser about what to expect during our upcoming webinar.
"Are you sure the S&P 500 is expensive? Just show your friends and family this chart. Tell me where the black line should be. This is the S&P 500’s P/E multiple looking backwards, all the way back to the 1980's.
You can see that if you called the market expensive back in 1996, around where it is right now, you would have been very wrong in 1997, 1998, 1999. People say this market is just like the Dot Com bubble but we’re nowhere near those peaks.
So guess what happens? When grow is slowing the P/E compresses. When growth is accelerating the P/E expands."
"Now, what I love about this market is that the "E" keeps going up so the "P" hasn’t had to expand that much. We’ve seen a massive acceleration in earnings that’s kept the multiple of this market mostly steady, climbing yes but not exploding to the upside like it did in 2009 or 1998/1999. This is an update on third quarter earnings. If you go down the line Tech has earnings of 25.9%. In other words, it’s paid to be on the growthier side of the market.
If you just take the Nasdaq earnings, tech stocks are up 22%. That’s phenomenal. I challenge any bear who’s been moaning about valuation throughout the year to tell me that they were going to short the market even though Tech earnings would be in the 20% to 25% range. They never said that."
