A few concerns...
G7 is in huge disagreement, Brexit is coming, political upheaval in several large economies, central banks making some large plays, corporate and national debt loads continue to increase as a percentage of earnings/GDP, US housing market continues to outstrip both inflation and wage increases, entities are still searching for yield and meaningful capex to dump unproductive cash into, stock buybacks sputtered only to fire again on a massive, temporary tax break...
Yet still we trend sideways, and even up a little? We're only just off some rather impressive all-time highs at that.
All of these seem counter to some of the biggest justifications for the current lofty valuations; primarily that of the forward P/E and strong earnings growth.
How rational is the current market? Its behavior seems to diverge from real events more and more every week at this point, and the dissonance only seems to accelerate.
What do we think?
Submitted June 11, 2018 at 03:40AM by gta3uzi https://ift.tt/2MhMSDO