THERE ARE 2 MAIN REASONS STOCKS GO UP:



1. PE ratio expansion.
2. EPS goes up.

For 1, how much more can the PE ratio expand?
Not much more.

For 2, how much more can EPS go up?
Actually a lot.

So right now, we are flying an airplane with 1 engine.
The single engine is EPS growth.

(Not PE expansion, cause it's already close to ATHs for PE ratio)

in 2010, we had 2 engines, that's why the market ripped so hard since then.

But now, again, 1 engine.

Keep your ratios in check.
Do not over leverage.
Know what you own.
MORE-3.42%
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