King IV.
01-21

$Amazon.com(AMZN)$

If one simply used Graham's valuation estimate for the S&P to get a generalized idea of what its true value is it'd look like this: ($200 x (8.5 + 2*8) * 4.4) / 5 = 4,312 and that is being generous on the growth rate over the next 5 years at 8% and corporate yield at 5%. One would be paying full price for the S&P today if it was priced at 4,300. It is currently 6,000. Analysts have pumped the valuation estimates for 2025 by insane values (50% growth in the next few years)- even saying 25Q4 will be greater than 17%+. Laughable to say the least. Enjoy the last push higher - it will be followed with a repricing below the fair valuation as earnings will be nowhere near Wall Street's delusion values.

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