Deep Dive: S&P 500, Valuations, China PMI

The video discusses the S&P 500's recent tight trading range, highlighting its minimal movement over the past 12 days. It then shifts to analyzing stock valuation metrics, focusing on price-to-EBITDA ratios, which have reached historically high levels. Finally, the video examines Chinese PMI data, noting a rare instance where the private PMI surpassed the official one, suggesting a potential shift in economic dynamics.

Discuss the implications of the price to EBIT DA ratio reaching its highest level.

What could be inferred about the performance of smaller companies compared to larger ones based on the PMI data?