Infrastructure Capital Advisors 451 Followers

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The S&P 500’s climb toward 7,000 looks less like a fantasy and more like math. Technology now accounts for about 30 percent of total S&P earnings, up from 10 percent two decades ago. Consensus forecasts call for S&P earnings to rise roughly 10-11 percent in 2025 and another 14 percent in 2026.

Interest rate cuts, potential tax reform, and productivity gains from AI all need to materialize for 7,000 to hold. The S&P 500’s climb toward 7,000 appears increasingly plausible when considering valuation metrics. At a forward price-to-earnings ratio near 23×, if corporate profits reach roughly $300 a share, the index would trade near that level.

This multiple may seem high, but the trajectory is supported by solid fundamentals and optimistic forecasts.

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This article was written by 451 Followers Infrastructure Capital Advisors (“Infrastructure Capital”), a leading provider of investment management solutions designed to meet the needs of income-focused investors.

Jay Hatfield is CEO and CIO of the investment team. Mr. Hatfield is the lead portfolio manager of several funds, including:
– InfraCap Small Cap Income ETF (NYSE: SCAP)
– InfraCap Equity Income Fund ETF (NYSE: ICAP)
– InfraCap MLP ETF (NYSE: AMZA)
– Virtus InfraCap U. S. Preferred Stock ETF (NYSE: PFFA)
– InfraCap REIT Preferred ETF (NYSE: PFFR)

Infrastructure Capital also manages a series of private accounts.

The firm frequently appears on or is quoted in major media outlets such as Fox Business, CNBC, Barron’s, The Wall Street Journal, Yahoo Finance, TD Ameritrade Network, and Bloomberg Radio/TV.

Their team publishes a variety of resources including:
– Monthly market and economic reports
– Quarterly commentaries
– Investing primers
– Asset class and strategy research

In addition, Infrastructure Capital hosts a monthly webinar and actively participates in industry conferences to provide educational investing resources.
https://seekingalpha.com/article/4840019-7000-or-bust-why-equity-valuations-can-stay-elevated?source=feed_all_articles