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Why the stock market has "a long way to go" in the coming years



There are really a lot of things in the stock market right now, but in our Call of the Day Michael Kramer, founder of Mott Capital Management, is convinced that there is some serious upside in the coming years.

It all starts with grades.

Kramer points out that the earnings multiple of the S&P 500 index

SPX, -0.39%

over the last 12-month period is around 19.7, the lowest level since June 2016 – a time when "the world literally felt like it was (This multiplier is a key method for measuring the value of a stock against profit.)

But in reality, which may be of greatest importance to the markets, we were in the midst of a profit recession that was soon will end.,

The bull market has a life and three years later it still does, he says.

Read: How big will this rally be at the end of

For some context, Kramer used 1

988 earnings data and projections until 2020, and then recounted that having an S&P chart for what he says is a self-justifying reflection of where we are.

And more importantly, where we are headed


Kramer explained that the numbers show attractive estimates of equity and, if corporate profits continue to increase, as expected, the market "has a long way to go" in the coming years.

Stocks are increasing this morning, although they are not "long distances".

The Market

The Dow Futures

YM00, + 0.13% ,

S&P

ES00, + 0.31%

and Nasdaq

NQ00, + 0.36%

all are green in front of the opening bell. The pound

GBPUSD, + 0.2389%

is rather volatile as investors wait for more updates on Brexit after Prime Minister Boris Johnson's vote on the deal on Saturday was not a start. Europe

SXXP, + 0.52%

stocks are up.

Graphics

Yeah, it's a little hairy.

The buzz

We've got a big week of bell revenue like Microsoft

MSFT, -1.63% ,

Amazon

AMZN, -1.68% ,

Proctor and Gamble

PG, + 0.72%

and Boeing

BA, -6.79%

among the nobles of the dock.

Voters will not have to wait much longer to hear how Democratic presidential candidate Elizabeth Warren plans to pay for Medicare for All the future she envisions. The Massachusetts senator, who says she will give details of her plan soon, came under heavy fire from opponents during last week's debate over refusing to say whether her plan would raise taxes on the middle class.

Strike against General Motors

GM, -0.06%

spill in the second month, and the impact is intensifying in the Midwest at the American Union of Automobile Workers Union forced out a preliminary employment deal with GM last week, but union leaders decided continue the pickets until the workers approve the agreement.

Quote

“Market stability should not be tweeted here or tweeted there. It requires thinking, thinking, quiet and measured and rational decisions. ”- Christine Lagarde, who will soon be President of the European Central Bank, in an interview broadcast on CBS's 60 Minutes Sunday night.

Economy

New and existing housing sales data for September are likely to be the economic moment of the week, but we will not review them until Thursday and Tuesday, respectively. There is nothing noticeable today. The University of Michigan ends the week on Friday morning with the Consumer Confidence Index.

Read: The latest data doesn't do anything about investor spirits

Tweets
Random reads

Influencers can buy 1000 counterfeiters on Facebook

FB, -2.38%

for $ 34. Advertisers pay billions to advertise products to real people.

There is a religious bear market.

That sure looks like the secret Twitter of Republican Senator Mitt Romney

TWTR, -1.57%

account.

A man stabs his brother to death; now he is winning six figures in Silicon Valley.

The grim reality of what climate change can do for three major US cities.

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