In February, unemployment was at 3.5% and the S&P 500 was around 3400, which at the time seemed overvalued because it had gone on a crazy run up.
Today, unemployment is about 11%, and you could argue it's really higher because a lot of small business jobs are currently being preserved by the PPP, and the S&P is close to 3200.
I think it's clear that the stock market has become totally disconnected from the real economy. The market is basically pricing in the assumption that within the next 12 months the economy will be back to where it was and surpass levels we saw earlier this year. This may happen if everything goes right, but since it's an election year, we know everything won't go right. The globalists will use every tool in their toolbox to destroy the economy before the election.
Also, the market is totally ignoring the huge risk associated with decoupling from China, which will be great in the long run, but will probably pound the markets in the short to medium term because it will hit large company profits hard.
Personally, I think the market is overvalued at least 10-15% right now.
In February, unemployment was at 3.5% and the S&P 500 was around 3400, which at the time seemed overvalued because it had gone on a crazy run up.
Today, unemployment is about 11%, and you could argue it's really higher because a lot of small business jobs are currently being preserved by the PPP, and the S&P is close to 3200.
I think it's clear that the stock market has become totally disconnected from the real economy. The market is basically pricing in the assumption that within the next 12 months the economy will be back to where it was and surpass levels we saw earlier this year. This may happen if everything goes right, but since it's an election year, we know everything won't go right. The globalists will use every tool in their toolbox to destroy the economy before the election.
Also, the market is totally ignoring the huge risk associated with decoupling from China, which will be great in the long run, but will probably pound the markets in the short to medium term because it will hit large company profits hard.
Personally, I think the market is overvalued at least 10-15% right now.