Investment Strategy Network, an investment tool designed to assist in the decision-making process for investors
Stock Fair Value Brief: Volume 1, Issue 5
There is no doubt returns for American stocks have been exceptional in 2017. Earnings continue to support valuations and expectations are not excessive. There are many factors that influence market returns of which fair valuation is one. Given the current valuations for the market overall and most sectors within those markets, there is a reasonable expectation that markets can support continued growth in value. Expecting a repeat of 2017 in 2018 might be more hopeful than factual, but there is no expectation that normal returns would not continue for the foreseeable future. Short term fluctuations can always materialize and unexpected events can disrupt markets, but current conditions and valuations support a continuation of favorable expectations.