Amusing stocks discount nothing then take off

Tuesday, 3 March 2020

To the moon! As the global pandemic worsens by the hour, stocks have had enough of discouting any harm whatsoever to earnings and it’s back to the moon, up 5% at the close:

In one night the S&P added another point to its absurd 18x forward earnings. The charts speak for themselves:

What do equaties think is going to happen as the virus spreads in the US?

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.