Posted: Sun Feb 07, 2021 1:12 pm
59% of companies in the S&P 500 have now reported Q4 results. 81% beat earnings and 79% beat revenue. 77 companies will report this week. The S&P 500 forward P/E is up to 22X this week. The 5 year average is 17.6X. The Fed is fueling this high forward PE. But we need to watch increasing interest rates and a possible tax increase for corporations. The S&P target looks good for 2021, maybe over 4000 and closer to 4300. Your typical pull-backs along the way. That target is only IF we don't see a tax increase and I don't think we will for 2021. But, I do think we'll see that tax increase in 2022. Keep a sharp ear out for what J. Yellen says as we move. A signal will be given. Renewable energy, clean energy, green energy sectors and China stocks are hot right now. BTW, you ever stop and think about what is used to produce all of the electricity needed to recharge all of these batteries? I don't know, I'm drinking the fruit punch and hold: LI, PLUG, BYDDF, SBE, TSLA. I recently did some profit taking in my real TSP account and have 30% in cash but I'm looking to use some of that to buy into any pull-backs. So what's your outlook? Stay motivated TSPers and Ride that Bull!