Saturday , 20 April 2024

Tag Archives: equity valuations

S&P 500: Earnings are Strong + Values are Weak = Buying Opportunity

With all the negative talk that we are consistently fed, the truth is, that corporate America is strong. The fundamentals underpinning most of our great companies warrant higher valuations than they are currently receiving. With interest rates at all-time lows, and therefore, the price of bonds at all-time highs, they are less competitive to stocks than normal. Consequently, I believe that equity valuations should be higher than normal, not lower. Therefore, I feel that now is a great time for investors to be building equity portfolios whether the market is at the total bottom or not. [Let me be more specific as to why I think that is the case.] Words: 1493

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