Welcome Back, Kotter

Kind of feeling like the 70’s all over again.

Skyrocketing inflation.

Falling GDP.

Energy shortages.

Withdrawing from lost wars.

Yet, unlike in the 70’s, the market remains at historically high–as opposed to historically low–valuations.

Curious.

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Cuz 50% or higher percentage of SP500 are companies that has very high roa, and thus not really hurt much by higher inflation… plus US is in much better position than Europe and Asia, we can actually afford to raise rate faster and earlier to kill inflation.

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Commoncents,

There is the little matter of interest rates being just a smidge different between now and then.

Jk

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Let’s disco!

Do the hustle!

Ah, ah, ah, ah, stayin’ alive, stayin’ alive!

Burn, baby, burn! Disco inferno!

Turn the beat around, love to hear percussion . . . .

YMCA! It’s fun to stay at the YMCA!

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Yet, unlike in the 70’s, the market remains at historically high–as opposed to historically low–valuations.

Never underestimate the power of the Blair Witch to prop up stock market bubbles. :slight_smile:

Just between Apple and Goolge they announced $120 B in buyback. Even in proportion have you seen such a balance sheet strength then?

< Yet, unlike in the 70’s, the market remains at historically high–as opposed to historically low–valuations.>

No one knows what will happen next month, or next year. The probability of a 50% valuation cut is not very low. The market thought inflation would stay low forever only one year ago.

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