Sunday , 11 December 2016


Current Equity Market Valuations Defy Logic – Here’s Why

What is unique about this rally is the excessive premium being placed on future earnings and economic growth. Unfortunately, the level and term structure of interest rates are not confirming the broad logic behind these equity market valuations. In fact, they damn that logic. In the past, when high valuation measures occurred and subsequent GDP was weak, the stock market has posted substantial losses.

What can we expect this time? Read on!