Good morning and Happy Valentine's Day!
Yesterday, the S&P 500 Index closed at yet another high at 2,328.25 and was up +0.52% for the day. The three best performing sectors yesterday were financials, industrials and materials. In checking the markets this morning as I write Europe is mixed with Asia-Pacific being mostly down. In the States in checking the futures this morning stocks look to be down along with government bonds.
For what it's worth ... here are my current thoughts. Old_Skeet's baramoter is reflecting that stocks (S&P 500 Index) are now overvalued. Currently, the indicator that is keeping the barometer from registering as an overbought condition is the strong forward earnings outlook. With this, Old_Skeet is not currently a buyer of equities. I'm not selling either as we are still in earning season plus stocks historically trend to perform better in the fall, winter and spring months. With this, I am not suprised that stocks are now overvalued. My target price for the Index this year is 2475 which would be a gain of about 10.5% from where we started the year. Since, the Index is already up by about 4% thus far this year and about 60% from my target I'm looking for some sideways movement or a moderate pullback in the nearterm. But, I also think stocks are going to continue to climb the earnings wall this year and the rally continues unless we have some major event that would hault this movement. I'm thinking, that the Trump rally will continue to advance.
Again, Happy Valentine's Day ... and, I wish all "Good Investing."
Old_Skeet
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