Скачать или смотреть The Secret Behind the S&P's 2024 Growth

Understanding multiple expansion investing in the S&P 500 is crucial for anyone looking to navigate the stock market effectively. 📬 Sign up for Kyle's weekly newsletter, The CFO Signal: https://www.atlaswa.com/get-the-signal

*This content is for informational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.

In this video, we dive into how multiple expansion played a surprising role in the S&P 500's 2024 returns. With 17% of the S&P 500’s gains attributed solely to multiple expansion, we explore what this means for both short-term and long-term investors.

So, what is multiple expansion? Unlike earnings or dividends, it reflects how much investors are willing to pay for the same fundamentals, such as a company’s earnings and dividends. In 2024, this phenomenon drove a significant portion of market returns—not because companies became more profitable, but because people decided to value them differently. This dynamic can lead to sharp fluctuations in stock prices, even when the underlying businesses remain unchanged.

For long-term investors, the key takeaway is clear: day-to-day or year-to-year market movements often have less to do with company performance and more with investor sentiment. By understanding multiple expansion and focusing on the fundamentals, you can better navigate the unpredictable ups and downs of the market while staying aligned with your financial goals.