SFY - Investors Haven't Capitulated Yet
The stock market remains overvalued for expected 2021 earnings. In my 2020 Outlook: Euphoria To Despair and in Expect Major Stock Market Challenges In 2020, I laid out the arguments for a negative to at best neutral 2020 stock market. My reasons ranged from poor economic policy to overvaluations brought on by loose money.
On February 27th, in Coronavirus Is A Match That Lit The Overvaluation Tinder, I reiterated that valuations necessitated a massive correction. On March 3rd, I followed up with Coronavirus Will Spur Much Deeper S&P 500 Correction.
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