Sentences with phrase «observe rich valuations»

Even if we observe rich valuations, there can be some justification for accepting market risk during periods when market internals are uniformly strong, provided that the environment is not also characterized by a syndrome of overbought, overbullish and rising - interest rate conditions.

Not exact matches

It's important to distinguish between the level of valuations, which has indeed become breathtakingly extreme in recent years, and the mapping between valuations and longer - term market returns (which we observe as a correspondence, where rich valuations are followed by poor returns and depressed valuations are followed by elevated returns).

Given the extremely rich valuations we've observed since the late - 1990's, and the fact that the S&P 500 has achieved very little net return over this period, our approach has been generally defensive.