The biggest problem in a market where everything is expensive
http://ift.tt/2gB2unB
Business Insider CEO Henry Blodget looks at President Donald Trump’s claims that he’s responsible for the record-setting stock market, and finds that the S&P 500 rose just as much over the first 11 months of Barack Obama’s second term. Blodget also provides a bearish argument, which suggests that high valuations have historically preceded periods of market weakness. He also points out that prices are high across many different asset types, which means that diversification might not help investors out right now. He then highlights a chart cited by John Hussman, the president of the Hussman Investment Trust, which shows that the expected return on a diversified portfolio is low at the moment. Business Insider executive editor Sara Silverstein goes on to say that the search for yield across all asset classes worries her.
See Also:
- THE BOTTOM LINE: A market warning, the big bitcoin debate and a deep dive on tech heavyweights
- A $1 trillion money manager says Japan is the biggest opportunity for his business
- A $1 trillion money manager explains why stocks are fairly priced
business
via Business Insider http://ift.tt/eKERsB