Low rates push SPY valuation to 25× forward earnings, NVDA trades at 45× earnings, far above historical norms. The three longest and dominant US CAPEX cycles suggest a CAPEX downturn until early 2036.
When CAPEX history meets nosebleed valuations, the only direction for risk is down. “What lower short term rates have done is keep stock prices elevated & valuations stretched. That distortion shows up clearly in the data. The $SPY currently trades …