The New Reality…

The Markets Fatal Flaw in my view, it is not that Forward P/E ratios are high, it is the expected earnings part of the equation. Turbulent disruptive times do not make for happy strong earnings.

As market participants adjust to the new reality, that the drivers of the economy for the October 2022 to November 2024 rally are disappearing, the period between now and December 4th are key. If we don’t see the SPX make new highs by then, you have a high probability that the market’s post-election highs to date will be a big resistance area for the coming Trump economy.