Peak S&P 500 PEs—-Why The Market Way Over-Priced The Tax Cut

This would be the best case scenario. The result would be more productive companies, increased jobs, and a stronger economy. Yet ever since the Great Financial Crisis, interest rates have been hovering near zero. For many businesses capital has been almost free. Why would the tax cuts suddenly cause them to invest in the CAPEX they have delayed for so long? Now don’t mistake this as a forecast that there will be zero pickup in CAPEX spending. Of course some of the tax cut will go into CAPEX spending, but not nearly as much as the economic bulls would have you believe.