Typically, when stocks trade at
very rich valuations, a slight misstep in a quarter can lead to a dramatic sell - off.
Not exact matches
«M&A activity globally is
very high, which is common in the late stages of an equity bull market as both private equity and corporate owners look to cash in on
rich valuations,» Lait explains.
Valuations remain
rich, and internal market action remains
very unfavorable.
With
valuations very rich, bullish sentiment high, and stocks generally overbought, there's a certain momentum to the market that makes it likely - in terms of probability - that stocks will be higher in the weeks ahead.
Put simply, when
valuation measures are steeply elevated but investors remain inclined to speculate, as evidenced by
very broad uniformity of market action and the absence of internal divergences,
rich valuations often have little effect on market outcomes.
The
valuations for consumer staples and discretionary stocks have gotten
very rich.
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.
A
rich valuation but not wild for a
very high growth technology - related firm.