If there is one rule of positive thinking, it is to keep busy and not worry when faced with a problem. In the world of investing, I believe the merits of this philosophy are that we need to worry about valuations rather than worrying about the economy slowing down or, what is even more uncontrollable for our condition of humble mortals, of a recession which does not currently affect the world economy.
If we worry, which we don’t worry about, the PER paid on the Nasdaq, the multiplier increases to 34 and 28 times, 2024 and 2025. In reality, if the profit forecasts that the market expects for The Seven Mercenaries are met (Alphabet, Meta, Microsoft, Apple, Amazon, NVIDIA and Tesla), we are talking about reasonable multipliers. It is expected that its average earnings growth will increase over the next two years at a rate of cruise 20%. If this ends up happening, the 2026 PER would only be 22 times.
But what would happen if these profit forecasts do not come true? The answer is very simple. The major indices will be doomed to an inevitable correctionthe depth of which can only be quantified based on the deviation from the forecast. I think any major correction in the major markets will take the entire stock market with it. But I don’t think at all that it addresses the entire market with the same force. I even think about the possibility that money from headlines evolution towards a selection of companies with attractive professionsat reasonable prices.
In the case of Eco30 Walletthat elEconomista.es It is built with international values and forms the basis of the recommended fund Eco30 Braided Wallet – which in six years of life reaches an annualized profitability of 7.6% – a PER of 12 times is paid in 2025 and 10.5 in 2026; which represents a revaluation expectation of 8.3% and 9.5% respectively. There may be a gap in profits and a correction of companiesbut they already trade with much less demanding multipliers than those of the major indices. He Eco30In addition, it has an average expectation of growth of the companies that make it up two or three points higher than that of the bloc formed by the Magnificent Seven.
