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Economy

progree

(13,077 posts)

3. Yup, 40% of the S&P 500 companies' revenue is from abroad

Reply to Hugin (Reply #2)

Wed Sep 2, 2020, 10:20 AM

Sep 2020

But I think we're in an era where Price/Earnings ratios just don't seem to matter anymore .... for now. Part of that is that bond yields are at all time lows -- people are just sick of investing in fixed income stuff (CD's, bonds) and getting like 2%. And money market funds are back to essentially zero interest. So people are buying stocks, since the alternative is not much better than putting money under the mattress.

But then I worry what happens to stocks when interest rates go up again...

Edited to add: Uggh, CD rates for 5+ years max out at 1.26%. And that's for a $25,000+ deposit. Shorter term are even lower, e.g. 3 years: "Red Rock Bank is 1.20%, the next highest is 1.00%.

https://www.bankrate.com/banking/cds/cd-rates/

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Highlight:

Amazon Drivers Are Hanging Smartphones in Trees To Get More Work in desperate economy [View all] progree Sep 2020 OP

Yeah I know, S&P 500 is up 9.2% year-to-date, so everything is super duper, right? progree Sep 2020 #1

My take on this is the US Markets are benefiting from the recovery of the rest of the World... Hugin Sep 2020 #2

Yup, 40% of the S&P 500 companies' revenue is from abroad progree Sep 2020 #3