US Makes Record Highs ..Again: Oil Stays in the green

US markets closed at new record highs yet gain last night with more reassurance from Fed's Powell on intervention should recessionary fears prove real. This FED put has provided a backstop to any sell-off and supports increasing prices and  stretched valuations with the S&P 500 trading at a P/E (TTM) of almost 24: this translates into a CAPE P/E of 31.1. Given the injection of liquidity and the low interest induced TINA trade (there is no other alternative)  combined with the EFT-driven passive buying, many are suggesting that this time it is different.  There is no doubt that valuations can stretch even further and there are historical precedents for much higher P/Es with the 2009 reaching a P/E 123 and the top of the Tech Bubble in 2001 with a P/E of 47.  With an eye to the exit we  maintain a bullish bias and trade what we see.

Oil continued to hold overnight maintaining a level for Brent around $55