Tough call on current course of action but S&P is selling for nearly 24 times (23.6) 2019 pre-pandemic earnings & same on estimated forward earnings for 2021............not many periods in history where the 1,3,5 year returns from those types of valuations were particularly outstanding & certainly nowhere near historical average return. YES - interest rates are low and so valuations are elevated BUT what IF interest rates (shock horror) start to rise and low risk assets begin to compete with equites for investment flows.
In a rising interest rate environment the S&P could experience a 'lost decade' from here.
I think BRKB gives you below market P/E - S&P does well so will BRK.........S&P P/E's contract due to rising rates BRK does well as it spread businesses (banks & insurance companies) benefit from rising rates
In a rising interest rate environment the S&P could experience a 'lost decade' from here.
I think BRKB gives you below market P/E - S&P does well so will BRK.........S&P P/E's contract due to rising rates BRK does well as it spread businesses (banks & insurance companies) benefit from rising rates