It’s impossible to know when something will matter, but I agree with Peter Cecchini, founder and CEO of AlphaOmega Advisors, who says Stocks Can’t Go ‘To the Moon’ forever.
‘Some of the revenue estimates I see, like you said, the consensus is just under $ 170, going to require multiples that just do not make much sense to me, in the context of the fact that rates are not going to go down. So if we want to look for multiple expansions to continue the march, I do not think we will get it because the Fed’s effectiveness is limited, right? It has firepower, and no one says the Fed has no ammunition. It can print money and it can buy treasures for as long as it wants. But at the end of the day, when you’re at zero, the stimulating impact is muted … I think it’s one big piece that people miss. We’re not just back to this earnings scenario, you know. If anything, we’re back in a situation where cash flow is a challenge, and by the way, debt levels have exploded. ‘
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