In what was expected to be a relatively uneventful Fed meeting a few short days ago, the June FOMC gathering turned into a headline-making event instead.
Since the end of 2019, S&P 600 price returns have been a respectable 21% or 8.2% annualized. This return hasn’t come close to matching 87% EPS growth, which has meant the P/E ratio of the index has contracted from 20.2 times to 13.1 times.
The drawdown in many stocks focused on cloud computing software has been, in a word, unbelievable. In basically one month’s time, from April 11 through May 11, the BVP Nasdaq Emerging Cloud Index (EMCLOUD) a group of cloud-oriented companies has lost roughly 30% of its value.