S&P 500 50 to 75 Why the index is overvalued!

The index looks incredibly miscalculated, here are 25 stocks discussed.

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50 to 75 Why the index is overvalued!

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24 Comments

  1. Sven great video, are you interested of any commercial REITs they have been destroid?

  2. Yep Sven, fully agree. SP 500 is priced over perfection, meanwhile tensions with china rise, Starbucks has significant exposure there…doesnt make any sense….but hey! The nvidia and tesla buyers are willing to pay for it!

  3. your point about buying at either peaks or lows makes me think I should think about buying some TRP on the TSX…I had them for 5 years before feb 2020 and rode through a few cycles as the dividend rose nicely.

  4. You and many others have been saying the market is overvalued for years. We can go back as far as we want and there will always be someone claiming the market is so massively overvalued. And yet there he keeps going up, in the long term, and beating most if not all fund managers and stock pickers as time goes by.

    1. And yet the performance of the average investor remains systematically on par with inflation.
      Why? Because they disregard valuation, and when the market corrects, they have nothing to cling to.
      He is going stock by stock and stating the obvious: there is a disconnect between the fundamentals of most businesses and the price of the shares.
      “And yet there he keeps going up” That is not an investment thesis: it is the mantra of a speculator.

  5. I don’t have much finance background but I also want to retire with money invested in stocks. I’d rather still continue buying sp500 than individual stocks or holding cash in the next 10 years. Is my strategy really that bad?

    1. As long as you know the risks associated with the investing method/strategy you are using its going to be ok. But so many just think stocks only go up, and fast! That’s just not the case. It’s takes a lot more time to do takes time to find companies that will likely outperform the market. Do you have that time available? Just understand the risks and what your goals are. I’m 3 years into my investing journey and I am still learning “my own style”

  6. To be honest, I’m mostly looking at infrastructure/utilities these days, while still keeping some cash on the sideline. I know debt will weight on their profit short term, but it’s mostly price in and government usually invest a lot in this kind of projects to relaunch economy + I’m selling agressive covered call with nice premium and getting some nice dividends while waiting for better opportunities. The way I see it, stock market will probably be volatile for a while, but mostly be flat.

  7. Be careful, “the last year PE looks good but the forward PE looks like 💩 “ is also something you could have said in March 2009. Not saying that we’re at that time obviously, but great PE and bad forward PE (analysts getting depressed) can be consistent with a buying opportunity

  8. The S&P 500 is Significantly Overvalued according to Buffett Indicator. Based on the historical ratio of total market cap over GDP 156.1% over fair value. Crazy

  9. Sven’s analysis: “it’s cyclical buy it when it’s low, it’s overvalued, if there’s a recession it will do bad”

  10. You nailed it, everything looks super expensive in these S&P stocks. You have to turn over 100 stones just to find 1 or 2 good opportunities, and I think most of them are in the mid-to-small cap range.

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