What’s Driving Stocks To Record Highs? Fritz Meyer Live

Coinciding with the Covid recovery, stocks returned an astounding 56.4% in the last 12 months. Is the Covid comeback over?

Fritz Meyer, an independent economist who has taught financial economics to professionals in CE classes monthly on A4A to rave reviews for 10 years, shows data on:

• the M2 explosion
• why a jobs recovery is suddenly no longer years off
• the full recovery expected in 15 months
• S&P 500 expected earnings versus current valuation
• latest FAANGM versus broad-market valuations
• why traditional stock valuation metrics do not apply now
• current valuations versus the last stock bubble
• the Fed’s stock valuation model
• 0% rates as far as the eye can see
• latest CBO report on long-term U.S. debt
• evolving views of U.S. debt
• U.S. debt cost to the next generation
• Jerome Powell on inflation
• the March 2021 jobs situation report
• ISM purchasing managers survey for March 2021
• DPI and consumer spending data for March 2021
• latest LEI
• the housing comeback
• household balance sheets
• U.S. total tax burden versus major world economies
• active versus passive 20-year performance
• gurus saying the darndest things
• conditions one-year ago versus now
• 10 years on A4A

Fritz Meyer Answers Questions From Advisors

Fritz Meyer’s webinar on March 10 was rated a 9.7 (out of 10), but we ran out of time to answer questions from the CFP, CPA and other professionals. Below are the questions, which are answered in this 15-minute video.

 Questions:
1. (Cathy Pinard) Can you comment on the price of lumber up over 100% over the last year and what do you see going forward? Do you see it continuing to rise indefinitely?

2. (Lisa Casciaro) Curious as to what Fritz's thoughts are on Bitcoin.

3. (Steven Erickson) Are the PEG calculations based upon forward earnings or recent past earnings?

4. (Edward Fulbright) Lucid vs Tesla opinions?

5. (Chris Gilmor) While herd immunity may occur in the US in April or soon thereafter, 130 countries have no vaccine atm. The World is a small place and Covid will likely be with us for some time. I think there is a real risk of some Covid variant making an appearance. Would a prolonged pandemic send the economy or market off the rails again?

6. (Joe Klingen) Won't increasing taxes decrease consumption spending, ie. GDP?

7. (Joseph “Chip” Montgomery) Fritz, what is your view of Modern Monetary Theory?

8. (William Pitney) Given Powell’s statement about bonds, should we consider increasing allocation to stocks.  Maybe moving from the moderate 60/40 to a 70/30 model to mute the concern with bonds?

9. (George Robertson) RE: GDP growth potential vs other countries... you never seem to include India in working age growth population... Why not?

10. (Mark La Spisa) Can Fritz in a future presentation discuss what his thoughts are on what is driving Tesla and Bitcoin?

11. (Mark La Spisa) Why do so many of Fritz slides use different historical periods?  Some go back to 2010, others go back to 2000 others go much farther. My concern is if I ever share what I learn from Fritz, I could be accused of data mining.

Explaining The High Price/Earnings Ratio Of Stocks

This week’s video for advisor clients is about the opportunity for investors, as the nation emerges from the Covid pandemic. While preparing for a wild ride in the stock market, financial consumers advisors typically target are prompted to consider how they might capitalize on panicked selloffs that seem quite possible in the near-term.

Borrowing from Fritz Meyer’s view of current financial economic conditions, the call to think about capitalizing the current confluence of unprecedented conditions is explained in two minutes. It explains why the high price/earnings ratios on the S&P 500 are not a good gauge of the risk of the current stock market. Keep in mind, this video is part of the continuing education campaigns advisors send to their clients and prospects. So it’s not coming out of left field. It’s a story told in an ongoing series of messages to clients about financial and tax planning for the long run.

The consumer education produced based on CE classes on A4A is not like the content provided by other advisor website companies. It’s more intelligent and tells stories that are complicated in articles, videos, GIFs, tweets, and email newsletters to engage investors by teaching them based on concepts taught on A4A.