SPXT - The S&P 500 Is Undervalued Tech Is In A New Paradigm
- Ignore the market-weighted PE, relative to Q1 of 2007. The S&P 500 today is undervalued.
- The future outlook with regard to the business cycle, volatility, yield curve, and what it means for stocks.
- There are too many deflationary forces for troublesome inflation to persist.
- Relative to Q1 2007 and Q1 2014, today’s software stocks have higher gross margins and lower operating margins. We’ll explain why this may explain current valuation levels.
- Economic recovery-induced revenue upside to outweigh problems of rising yields for tech stocks.
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The S&P 500 Is Undervalued, Tech Is In A New Paradigm