Apple more valuable than the entire FTSE 100
https://www.bbc.com/news/business-53996191
Investors are well served to keep a close eye on 3,335 on the S&P 500 and 11,180 on the NASDAQ 100 in the coming days, for any decisive move below these levels could be the start of a much sharper move lower.
Corporate earnings on the S&P 500 Index peaked on a quarterly basis at $41.38 per share on an operating earnings basis and $36.36 per share on a GAAP earnings basis nearly two years ago now in 2018 Q3.
For 80 billion represents the dollar amount of Treasury purchases that the U.S. Federal Reserve is carrying out each month as part of their ongoing market rescue program in the wake of the COVID-19 outbreak.
Stocks may want to fall for fundamental reasons, but when the buyer of last resort is effectively showing up in the marketplace with what averages out to be roughly $4 billion each and every trading day, this goes a long way in soothing investor nerves and juicing stock demand.
This is particularly true when traders also know that the same Fed can turn up the dial as high as $75 billion in daily Treasury purchases or more if it so chooses if things get unstable enough.
1. A "second wave" of the virus.
2. Prolonged labor market weakness.
3. Inadequate stimulus.
4. Market dynamics: high valuations and heavy concentration.
5. Political uncertainty.
1. Armenia | Azerbaijan
2. United States | Russia
3. China | India | South East Asia | Japan | United States
4. Greece | Turkey
At present, investors are paying 22 times forward earnings to purchase stocks on the S&P 500, 50 percent higher than the 10-year average valuations.
“They are buying bullish call options that expire inside two weeks. There was ($500 billion) of bullish call options bought in a four-week stretch by small retail traders”.
“In ’99 it was US$100 billion, in ’07, it was US$100 billion. That is what young, dumb investors are doing and when the market makers see those (call buying) out there, they sell that call to that person and they buy the stock”.
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