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Roger Dodger
Stoic Finance
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Comments by "Roger Dodger" (@rogerdodger8415) on "Michael Burry: The MOTHER OF ALL CRASHES Is Here" video.
The market especially the S&P 500 is NOT overvalued. Here's why. Let's say you buy a treasury and get 4%. On $100 that's $4 in profit. So another person spends $100 and gets a PE ( Price to earnings) of 20. He's making (really the companies he's investing in) $5 for every $100. The extra dollar being the risk premium (the extra buck you get for a "risky" investment over a "safe" investment) That is NOT WILDLY OVER INFLATED PRICES and Burry is wrong. If interest rates fall from here, stocks like the S&P 500 will look even more attractive.
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@saucyrossy3698 Explain. What's wrong? The GDP of an ENTIRE nation has no direct correlation with the TOP 500 companies in the S&P. Correlation does NOT imply causation. The average PE for the S&P 500 is around 22 right now, just slightly higher than an expected 20. Again, that is NOT WILDLY OVERPRICED. Period. End of story.
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