Is the Stock Market going to
Sell Down from Feb 2022?
TWB System. Simple and Easy. With Consistent and Proven Results By Students
Since 1996, there were 3 major Stock Market selloffs and their P/E Ratio (fwd.) were between 15.1x to 25.2x.
As of 31 Dec 2021, the S&P was trading at 4766 with it's PE at 21.2x. But this is technically more than 20% above its means.
The last time this happened was in 1999 when the S&P fell from 1500 to 980 within 12months. And back in 2008, the US House Price Index reached 390 and collapsed. Yet by 2021, it has risen to 539 or +39% from the previous cycle’s peak.
Based on UN Food and Agriculture Organization latest data, since 1990, there were 3 occasions whereby the UN FAO Food Price Index reached 132.
Once in 2008 and the next one was in 2011. And incredibly the S&P lost almost 700pts in 6 months (2008) and 300pts in 4 months (2011)
The Index just reached 135 in December 2021. Do you think History is going to repeat (again) itself?
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