A new market high was achieved this week depending on which index you follow. Below is the Dow Industrial Average Index. This week marked a new high on that index eclipsing the 2007 high of (14,198).
Although we have reached new all time highs in the market, the important thing to note is where does the market trade from here, until the rest of the year. As of today the Dow is up about 9% as of this writing.
Bottom Line: Stocks on a P/E basis are not expensive at a projected (13.6) - 2013 earnings, below the historical P/E average of 15. Against ultra low treasury yields, stocks can be deemed relatively cheap also. I expect some market pullbacks to be short lived in the range of -3% - 4% the rest of this year as there is plenty of Fed induced liquidity waiting to enter the market. Thank you for reading.
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