The lowest 2021 S&P 500 large bank price target is 3800, which is essentially where we are. In 12 of the last 15 years, the consensus end of year S&P 500 price target has been overestimated. Being bullish is good for business and a safe choice for analysts when everyone is following the herd. We discuss this in our latest episode. We also take a look at the valuation of the market which is at levels hard to justify even in this low rate environment. We discuss Jeremy Grantham's piece from early January about the nature of bubbles, and why he believes we are in a bonafide bubble at the moment. Finally, we answer a listener question about what to do with the cash that you want to use to buy a house in a few years.
Articles Discussed
Wall Street analysts make a big S&P 500 call for 2021. Market history says ignore them
Goldman says the bull market is still in the early stages, gives six trades to play it
Short seller Carson Block says rolling bubbles that keep popping up show fragility of stock market
