Michael Nadeau
👤 SpeakerAppearances Over Time
Podcast Appearances
The question is like, can you extrapolate out from there?
And we'll get into like, where is all this coming?
We've got some flow charts to show kind of where the money is flowing through.
Yeah.
Yeah, so the forward PE ratios right now, if you look at like the MAG-7, it's 26.7 or so.
If we look at the large cap S&P 500, we're about 21.
So this is not like insane.
We've seen higher valuations.
And the reason is because the E is just going up just as much as the price, right?
If the earnings keep going up and the price is going up at the same time, you know, the ratio is basically going to stay flat.
I see.
Yeah, so the pink ones are S&P 500 bear markets and the blue ones are corrections.
So corrections 10%, bear market 20%.
That's right.
That's right.
Yes.
Okay.
Because the earnings weren't as strong in 21.
That's the key here is the earnings.
Exactly.