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BETAPRO SP500 VIX ST FTRS 2X DLY BULL T.HVU



TSX:HVU - Post by User

Comment by Steven1on Jul 03, 2016 7:27am
211 Views
Post# 25017663

RE:RE:RE:RE:Long weekend read...

RE:RE:RE:RE:Long weekend read...Good article. I have heard arguments on both sides.  The other side of the argument is that US Corporate earnings have declined since mid-2014 causing the SP500 PE ratio to be at 24 instead of the more normal 20.
 
Here is the PE chart of the SP: https://stockcharts.com/h-sc/ui?s=$SPX:!GAAPSPX&p=W&b=5&g=0&id=p78552742564
 
Speaking of treasury yields, they have actually declined over the same period. US 30 Year bonds were 135 in 2014 and are now 173.  Under normal circumstances, the SP should be declining.
 
I agree with the argument that the FED has been the prime mover of prices. Except for the rate hike last December, the markets have been “verbally” kept up by the FEDS.
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