Schedule for Week of May 5, 2024
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This will be a very light week for economic data.
*----- Monday, May 6th -----*
2:00 PM: *Senior Loan Officer Opinion Survey on Bank Lending Practices* for...
2022-05-17
Fantasyland Economics
Stocks cannot rise unless "inflation" goes into financial assets and not commodities.
Dividends could grow more like 10 to 15 percent with inflation of 5 to 7 percent, but then the S&P 500 yield will probably also be moving towards 5 percent as it did in the 1970s. If I put in 15 percent annualized dividend growth, year 5 at a 5-percent yield results in SPX at 2300, an inflation-adjusted level of 1800.
Labels:
Charts,
inflation,
interest rates,
SPY
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