US stocks record
Tesla's (NASDAQ: TSLA) recent run has utterly crushed the shorts, with the share price more than doubling since June on an improved market reaction to recent releases, and folks are beginning to talk about possible record highs in 2020.
More generally, US stocks have simply powered on and on, reaching new all-time highs yesterday.
If you ever watch networks like CNBC (I wouldn't recommend it) the mood has generally been jubilant, bordering on crowing.
While there's no single agreed upon measure for valuing markets, the overvaluation according to most metrics is bordering on deranged.
At the last count the Crestmont P/E is more than 125 per cent above its long term geometric average, or 3 standard deviations from the mean.
Investing at those levels offers expected real future returns of somewhere close to nada - a bit like three 7-foot blokes coming into a room, and expecting the next few guys to be 7 feet tall as well.
Unless the Harlem Globetrotters are in town, that ain't gonna happen.
Meanwhile, Wazza has been building up his cash pile to unprecedented levels at US$ 128 billion.
Having some cash certainly seems like a smart move right now given how expensive stocks are.
But still it's been a tough time for fundies to demonstrate their worth, with most failing to keep up with total return indices.
But still it's been a tough time for fundies to demonstrate their worth, with most failing to keep up with total return indices.
