Stocks are pricey but so can be bonds and yellow metal. Even bitcoin has captured a bid after a months fallow period lately long, giving way to a robust burst higher. And if it feels as though the recent tandem asset run-up has the markets on a knife-edge, it might be for reasonable. Lindsey Bell, investment strategist at CFRA, told MarketWatch in a recently available interview. The S&P 500 price-to-earnings — a popular way of valuing shares — on the trailing 12-month basis is at 21.83, weighed against a 10-12 months average of 17.87, relating to Dow Jones Market Data.
That means the mixed price of the constituents of the index was almost 22 times the web earnings produced over the past year. If investors find those valuations rich, so-called haven investments are also costly. The 10-year Treasury note yield finished last week’s trade at 2%, about half-a-percentage point below the 10-year average for the benchmark bond at 2.482% — briefly dipping beneath that level to indicate a nearly three-year nadir. And a measure of the stock-market turbulence is relatively richly costed also. The curious situation in the investing landscape is one which some strategists argue is the byproduct of global central bankers who are struggling to sustain a decades-old recovery.
Michael Antonelli, market strategist at Baird, told MarketWatch. Still, investors are obviously uneasy. Saturday overnight On, U.S. So what’s an investor to do against that backdrop? Bell says a balanced, diversified investment stock portfolio is the answer. The … Read the rest