MAMU: The Mother Of All Meltups
Ed Yardeni | Jun 12, 2020 12:21AM ET
As of Friday June 5, the S&P 500 was up 42.8% since March 23. This 52-day melt-up is historic. It is the largest since bigger gains in August-September 1932 (up as much as 109.2%) and May-June 1933 (up as much as 73.2%).
The melt-up started the day after March 23, when the Federal Reserve announced QE4Ever and started carpet-bombing the financial markets and the economy with B-52s full of cash (Table of S&P 500 Panic Attacks Since 2009 .) It’s staying there in my record books!
On Friday, the forward P/Es of the S&P 500, S&P (NYSE:SPY) 400, and S&P 600 jumped to 22.6, 23.1, and 26.1, respectively. Here’s the latest performance derby of the major MSCI stock price indexes since March 23 through Friday’s close in local currencies: US (43.6), All-Country World (37.4), EMU (35.2), Emerging Markets (28.5), UK (28.5), and Japan (25.4). Here are their forward P/Es on May 28: US (22.1), EMU (16.3), Japan (15.3), UK (15.1), and Emerging Markets (12.9).
Long live the bull market! Now we have to worry that MAMU might lead to its demise since melt-ups tend to be followed by melt-downs!
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