US stocks rebound July 15
The U.S. stock market on the 15th rebounded sharply without a clear reason.
The University of Michigan's July Consumer Confidence Index released in the United States rose to 51.1 from the previous month, and the five-year inflation expectation at 2.8% is said to have declined from 3.1% the prior month, which is cited as a factor. The economy remains resilient, and inflation concerns have eased somewhat.
It is said to be the data the Fed pays the most attention to when judging monetary policy, but that is a lie.
Well, however, since mid-June the U.S. stock market has been flat.
When checking U.S. stock valuations,
(1) Earnings outlook is strong. Even though the economy is said to be in a recession from Q4, my forecast is much more bearish, but why is the market so bullish?
(2) What has been depressing stock prices is not earnings but a fall in the P/E ratio. It is well below 20 times EPS. Therefore, even the mere expectation that the Fed will not move to rapid rate hikes can push the market higher.
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