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June Swoon Ahead? Maybe, But Not Because of Valuations
June 03, 2014 at 19:00 PM EDT
Earlier this week, the S&P 500 reached an all-time closing high, and U.S. equities aren’t the only ones hovering around record highs. On a global basis, stocks have advanced more than 40% since the summer of 2012. Given the extraordinary performance of most equity markets and the percentage of gains driven by expanding multiples, it’s not surprising that many investors are wondering whether the bull market has run its course and a June swoon is on the horizon. My take: While there are few absolute bargains left anywhere in the equity market and stocks are no longer cheap at the aggregate level, equities at the broad level aren’t so stretched as to suggest that valuation alone is likely to end the bull market. As I write in my latest Market Perspectives paper, “Has the Bull Market Run Its Course,” although a number of valuation metrics today suggest lower returns over […] Click here to read the original article on ETFdb.com. Related Posts: No Related Posts
Earlier this week, the S&P 500 reached an all-time closing high, and U.S. equities aren’t the only ones hovering around record highs. On a global basis, stocks have advanced more than 40% since the summer of 2012. Given the extraordinary performance of most equity markets and the percentage of gains driven by expanding multiples, it’s not surprising that many investors are wondering whether the bull market has run its course and a June swoon is on the horizon. My take: While there are few absolute bargains left anywhere in the equity market and stocks are no longer cheap at the aggregate level, equities at the broad level aren’t so stretched as to suggest that valuation alone is likely to end the bull market. As I write in my latest Market Perspectives paper, “Has the Bull Market Run Its Course,” although a number of valuation metrics today suggest lower returns over […]
