How Much Higher Can the S&P 500 Go?

The video discusses the historical and current relevance of the AD line, particularly in relation to the S&P 500's recent record-setting performance. It highlights a divergence between the S&P 500 and the cumulative AD line, suggesting potential market strength discrepancies. The video also compares NYSE stocks with tech stocks, noting the absence of major tech companies in the NYSE. It questions the applicability of traditional market metrics in today's economic environment, characterized by quantitative easing and low interest rates. Finally, it addresses the unusual timing of upward revisions in S&P forecasts for 2022 by major financial institutions.

What is the advanced decline (AD) line used to measure?

• The average stock price of the NYSE

• The cumulative total of advancing and declining stocks

• The total market capitalization of the S&P 500

• The number of new stock listings on the NYSE

Why might the NYSE not include big tech companies like Apple and Microsoft?

• NYSE focuses on international stocks

• NYSE has stricter listing requirements

• NYSE primarily lists older line companies and value stocks

• Big tech companies prefer to list on smaller exchanges

What is a potential reason for the shift back to big tech investments?

• Increased government regulations on tech

• Higher interest rates

• New tech innovations

• Decline in value stocks performance

How do smaller companies benefit in the current economic climate?

• They benefit more from government spending

• They have lower tax rates

• They receive more government contracts

• They are less affected by global trade issues

What is unusual about the timing of the S&P forecasts for 2022?

• They were released earlier than usual

• They were delayed due to market volatility

• They were only released by smaller firms

• They were more pessimistic than expected