The market rise since Trump’s election is welcome. But, is it a Trojan horse? The graph below should not make anyone feel bullish. Price multiples are extremely high and they will regress to the mean before earnings catch up with prices.
If Trump’s election has made you optimistic, make sure your recognize the difference between economic optimism and market optimism.
H/T to Zerohedge for graph.
Economic optimism may be in order. Market optimism, not so much. Beware of what looks like a Trojan horse. Feeding Trojan horses rarely improves anyone’s condition.
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