“I think that we have quite a high valuation, and a higher valuation than we have any right to deserve,” Tesla Chief Executive Officer Elon Musk
If you think Bernanke is a stud because of what his easy money policy has done for the market, then think again. The $SPX popped 216% under Volker, +285% under Greenspan, but only about 35% under Big Ben since he took over in 2006.
The biggest rock star stud Fed chairman was a guy you ever heard of. His name was William Martin. If you go to the way back machine from 1951-1970, the $SPX rallied from 21 to 85 for a total market return of about 300%. Yes, the S&P actually traded below 50 back in the day.
Check it out:
Last week was the busiest and biggest week for earnings, but the coming week is no slouch by any stretch as we see $AAPL, $YELP, $LNKD, $HLF, $FB, $GILD, $FSLR, $GM, $CVX and $XOM report. So there will be definitely enough action to keep you busy. $TSLA will report the week after that.
Some stocks are in la-la land lately. Names like $WFM have been up like a million days in a row. Maybe its getting bought, amazing action.
Some of the China stocks had a reality check after Muddy Waters said $NQ is worth zero and is a big scam. So owners of $YOKU, $FENG, $YY, $YNDX and other Chinese stocks ran the other way for now. No one wants to own the next $NQ. In many cases you might as well be drunk and blindfolded when owning these names. You can trust Chinese balance sheets as much as Casey Anthony with your kids. $BIDU and a couple of others would be the only exceptions in my mind.
Some momentum names eased off last week like $YELP, $LNKD and $TSLA, but hated names like $CLF are starting breaking out.
The financials ($XLF) were mixed last week as $JPM digested its fines, while $BAC braces to become the next target of the Feds.
I’m seeing some bullish targets of 1850 by year end, I’m also seeing for some calls of a 100 to 150 handle sell off into year end. Always interesting and that’s what makes a market.
Come on by for a free trial.