FOMO time we project S&P 500 target 4000 before end of Bull Market
FOMO time we project S&P 500 target 4000 before end of Bull Market
Powered by better-than-expected earnings, stronger than expected retail sales and progress on the trade front with China, the major market indices marched still higher, again this week.
Nearly a trillion dollars has matriculated into Bond and money market funds this year.
Fomo (fear of missing out) may now be creating a reversal of some of this run for safety.
Based on current interest rates our model points to S&P 500 fair value of 4000 powered by expanding PE multiples and 9 to 10% earnings growth in 20 20
Our top performers of the week were Roku (ROKU) up over 20 points as we upgraded our Target to $155 which ROKU hit immediately, rebounding strongly from last week's sell-off. NMI Holdings Inc. (NMIH) has traded nearly 10% higher posting better-than-expected earnings riding the wave of continued strength in the housing market.
Still, Micro caps remain undervalued at a 30% discount to big caps. We expect this undervaluation to close significantly over the next 6 months as investors fearful of investing in overvalued large-cap growth stocks, seek out the value in micro and small-cap stocks.
Thank You
Robert Maltbie, CFA
Singular Research, President
818-222-6234(office)
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