☕️ Markets march higher, worried about valuations?

Good morning! 👋 

It’s Hayley here while Keith’s still on the road. 

U.S. markets look ready to kick the day off with a bang, with all three major indices in the green. 

Right on cue. 

Earnings season is off to a better-than-expected start — big banks are putting up blockbuster numbers, and TSMC just delivered fantastic results, beating both top and bottom-line expectations and setting the tone for tech. 

Enthusiasm is clearly trumping the usual worry headlines about U.S.–China trade tensions and government shutdown talk. 

But now what? 

Keith continues to expect more strong results to lift the S&P 500 even higher — perhaps toward the 7,000 level he laid out earlier this year as a target, with a caveat that it may even be too conservative. 

Not bad for a market that “wasn’t supposed to make it this far.” 

And what's more... there’s still plenty to be optimistic about: 

• The Fed hasn’t meaningfully cut yet — but probably will one of these days. 
• There’s over $7 trillion — yes, trillion with a T — sitting on the sidelines waiting for a home. 
• Big money managers remain underexposed and fretting about valuations. 
• All the while, AI momentum keeps building. 

Naturally, that kind of optimism always brings out the naysayers. 

Could it fall? 

Of course.  

But the point Keith would want you to think about here is that a pullback or a bout of volatility isn’t doom; it’s part of the journey.  

History shows that. 

Okay, so what about the valuation crowd?  

I can already hear Keith chuckling at all the "The P/E ratio is too high", “AI bubble!” and “Too far, too fast!” chatter popping up again as I’m typing. 😅 

Keith actually sat down recently with his good friend Scott “The Cow Guy” Shellady, to unpack why traditional valuation tools and methods just aren’t up to scratch anymore. (Watch) 

You’ll find this especially helpful when it comes to companies like Palantir, which has soared more than 2,285% in three years, compared with just 86% for the S&P 500 — roughly a 27× outperformance.  

And that’s exactly why Keith says the path of least resistance is still higher. 

What you really want to do now is: 

a) position for tomorrow’s inevitabilities, and 

b) get your money there first. 

As always, let’s MAKE it a great day. 

You got this — I promise! 

Hayley E 😀