The S&P 500 sports a TTM P/E ratio of roughly 23 at the moment. The last time interest rates were slashed to zero, the market did not surge in response. TTM P/E actually dipped below 15 for a period.
Just a data point for those trying to estimate valuations in what is becoming an increasingly turbulent market, driven by uncertainty as to risk.
This is not a classic liquidity crisis. Interest rate drops are not going to restart factories/supply chains, resolve demand shocks caused by social distancing (voluntary or government-imposed), or address the many knock-on effects that flow from those issues.
Just a data point for those trying to estimate valuations in what is becoming an increasingly turbulent market, driven by uncertainty as to risk.
This is not a classic liquidity crisis. Interest rate drops are not going to restart factories/supply chains, resolve demand shocks caused by social distancing (voluntary or government-imposed), or address the many knock-on effects that flow from those issues.