Braeburn Observations:  The U.S. Stock Market

Braeburn Observations: The U.S. Stock Market

| July 12, 2017

There are two points that one cannot argue about regarding the U.S. Stock Market.  (Full article: Braeburn Observations for July 11, 2017 )

First, we are in the 8th year of a bull market. The stock market has gone up virtually uninterrupted since March of 2009. The chart of the S&P 500, below, shows this time period.

Chart from:

Second, the U.S. Stock Market Valuations are at historically high levels. The chart below shows historical 12 month trailing Price to Earnings ratios (PE’s). Valuation levels based on this metric are well above five and ten year averages.

Thus, we have the ideal situation for pundits to grow negative and for forecasts of doom to fill the financial news waves: an aging bull market and high valuations. However, valuations alone do not push markets down. There are a wide range of items to watch to indicate the future movement of the market, such as: economic indicators, the direction and level of interest rates, and political action on taxes and the economy.

If you have questions or concerns, please contact Michael A. Poland, CFA, Wealth Advisor, at 231-720-0619 or or visit our website, Braeburn Wealth Management