STOCKS ROCKET TO ALL-TIME HIGH: Here's What You Need To Know

It was another huge day for the stock market.

First the scoreboard:

Dow: 15,346, +112.0 pts, +0.7%
S&P 500: 1,666, +16.4 pts, +0.9%
NASDAQ: 3,495, +30.0 pts, +0.8%

And now the top stories:

  • Stocks surged to another all-time high today.  Some are worried things are getting too hot.  But most agree that markets are nowhere near the irrational exuberance days of 2000 and 2007.
  • “Anyone can find similarities in the stock market action of different years,” writes Reformed Broker Josh Brown. “It’s not complicated – stocks can really only do some combination of three things, up, down or sideways. But this type of comparative analysis is, as always, a function of what details you choose to leave out. I can compare my house to the Taj Mahal if I choose to leave out  quantitative  factors like square footage or qualitative factors like its location or historical significance.”
  • Brown and other market experts will first note that earnings are much higher today than they were during previous peaks, meaning that valuations as measured by price-to-earnings (PE) are relatively reasonable.
  • JP Morgan’s Tom Lee cranked up his year-end target for the S&P 500 to 1,715 based on a 14.7 PE on his 2014 EPS forecast of $117. “This has been a better bull market than we expected, particularly in 2013. But this is conforming to history—the average gain in the fifth year of a bull market is 19% (implies 1,719).”
  • Don’t Miss: 10 Countries Anxiously Watching Their Massive Gold Hoards Fall In Value >

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.