Future of US Stock Market: Our 6 Viewpoints

Future of US Stock Market: Our 6 Viewpoints

In this blog post we shall highlight our viewpoints about the future of US Stock Market.
1. Many people now believe that US Stock Market as a whole and companies of S&P 500 as individual’s valuations are at the extremes we had during the dotcom bubble. According to our view and that of https://www.multpl.com/s-p-500-pe-ratio (as below) US Stock Market (S&P’s) P/E is nowhere near to 2001 or 2009 level. Hence it is having much room to the upside:
US Stock- PE Ratio
2. People also believe that on the potential that we would not have any jobs because all the machines are doing them. But according to us seeing Japan’s (considering the fact they use robots/ automation to the highest level) unemployment over years (as below), it has not gone any up due to automation according to https://tradingeconomics.com/japan/unemployment-rate:
JAPAN Unemployment
3. According to them, “If they keep printing it will eventually maybe not now but eventually it will lead to inflation”. Our thought on this is: if USA’s inflation has not gone up in last 25 years (as below) as per https://tradingeconomics.com/united-states/inflation-cpi then it shall not go up in next 25 years as well:
USA Inflation
4. It is true that world GDP as per https://www.imf.org/external/datamapper/NGDP_RPCH@WEO/BRA?year=2020 is -5.8% (as below) but according to https://au.finance.yahoo.com/news/world-economy-tipped-to-recover-to-precoronavirus-levels-mid-2021-074019490.html , “Global GDP is expected to return to pre-coronavirus pandemic levels by mid-2021” and “Deutsche Bank analysts now put global GDP to 5.6% from 5.3% in 2021. Global economic recovery from the depths of the COVID-19 plunge this past winter and spring has proceeded significantly faster than we envisioned, said Peter Hooper, Deutsche global head of economic research, in the note.
World GDP

5. According to https://www.forbes.com/sites/greatspeculations/2020/10/12/how-tesla-can-get-to-a-1-trillion-valuation/?sh=3df4358f1d32 Tesla’s (the new entrant in S&P 500 US Stock Market) valuation in 2025 would be 4.3 trillion dollar as shown below:

Tesla valuation
6. Last but not the least, the legendary Warren Buffet himself is optimistic about the US Stock Market. As per https://money.usnews.com/investing/stock-market-news/slideshows/things-warren-buffett-is-saying-about-the-market?slide=9 he says,
  • Stocks are still the place to be.
  • The U.S. will not default on its debt.
  • America will recover.

Warren Buffet

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Written by

Partha

Partha Banerjee is the Founder, Principal Trader, and Director of N P Financials Pty Ltd, one of Australia’s most respected ASIC-regulated proprietary trading and trader-training firms and an AFSL holder. With decades of experience across multiple market cycles, Partha is known for his disciplined, structure-first trading approach, grounded in transparency, risk management, and real-market execution.

He actively trades the same strategies he teaches, specialising across Forex, Equities, Commodities, Indices, Cryptocurrencies, and intraday markets. Under his leadership, N P Financials has become a globally recognised trading education and proprietary trading organisation, earning multiple national and international awards for regulatory excellence, educational depth, and long-term trader outcomes.

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