In an anecdote often attributed to President John F. Kennedy’s father, the moment he knew to get out of the 1920s stock market boom was when he started receiving share tips from his shoeshine boy. The latest and most dramatic instance of that will happen next month, when the S&P 500 will admit Tesla Inc. through its club doors for the first time. The median price of S&P 500 constituents is 20.89 times blended forward 12-month earnings. It’s very hard to see how Tesla will be able to justify those valuations in the long term. He has been a reporter for Bloomberg News, Dow Jones, the Wall Street Journal, the Financial Times and the Guardian.

Source: Mint November 17, 2020 10:52 UTC