Each January, JPMorgan releases a market outlook newsletter for the coming year.
Regarded as one of the most detailed and informational yearly newsletters out there, 2021 is no different.
Couple interesting points we will highlight:
•It’s worth noting that 90% of S&P 500 market cap is now based on intangible assets (R&D, intellectual property, software, etc), complicating historical comparisons. P/E ratios of the asset-heavy US corporate sector of the 1960s-1980s might not be the best comparison for today’s asset-light, less capital-intensive S&P 500 universe. Intangible asset shares were 20% in 1975, 30% in 1985 and 80% by 2005. So, some upward drift in S&P 500 P/E ratios over time makes sense, in principle.
•China/USA military comparison
•2008 vs 2020 and 2000 vs 2020 comparisons
•Antitrust issues and potential risks of Big Tech
Here is the link to the full article: https://am.jpmorgan.com/content/dam/jpm-am-aem/global/en/insights/eye-on-the-market/outlook_2021_amv.pdf
Enjoy