Fri, Mar 29, 2024
A A A
Welcome Guest
Free Trial RSS pod
Get FREE trial access to our award winning publications
Alternative Market Briefing

Comment: US Equity Correction? Prepare, Don't Panic

Friday, June 02, 2017

Matthias Knab, Opalesque:

AllianceBernstein writes on Harvest Exchange:

Political noise emanating from Washington has prompted fresh concerns that a US equity market correction may be looming. But have no fear: the market often takes a leg down, only to bounce back quickly.

US stocks have enjoyed a powerful rally since the election of Donald Trump as president in November. The S&P 500 Index advanced by 13.4% from the election through May 23, on hopes that the new administration's policies-including tax cuts, deregulation and repatriation of corporate cash held overseas-would boost economic growth and earnings. Now, with the president facing major political challenges, investors are concerned that the optimism may have been premature.

GAUGING THE WARNING SIGNS

US equity valuations are one of the key concerns today. The S&P 500 is trading at a price/forward earnings ratio of 17.9×, which is in historical perspective. While these valuations are supported by strong profitability, investors are questioning whether margins can continue to improve as they have over the last few years. And volatility has been extremely low, until it spiked last Wednesday. These conditions, together with political uncertainty, suggest that stocks could be vulnerable to a change in sentiment.

But let's put the economy and the market in perspective. It's......................

To view our full article Click here

Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. KKR raises $6.4bn for the largest pan-Asia infrastructure fund[more]

    Laxman Pai, Opalesque Asia: The New York-based global investment firm KKR has raised a record $6.4bn for its second Asia-focused infrastructure fund, underlining investors' continued appetite for private markets. According to a media release from the alternative assets manager, the figure top

  2. Bucking the trend, top hedge fund makes plans for a second SPAC[more]

    From Institutional Investor: SPACs aren't dead. At least not to the folks at Cormorant Asset Management. The life sciences firm, whose hedge fund topped its peers in 2023, is confident it will match the success of its first blank-check company. Last week, the life sciences and biopharma speciali

  3. Benefit Street Partners closes fifth fund on $4.7 billion[more]

    Bailey McCann, Opalesque New York: Benefit Street Partners has closed its fifth flagship direct lending vehicle, BSP Debt Fund V, with $4.7 billion of investable capital across the strategy. Benefit Street invests primarily in privately originated, floating rate, senior secured loans. The fun

  4. 4 hedge fund themes that are working in 2024[more]

    From The Street: A poor earnings report from Tesla (TSLA) has not hurt the indexes on Thursday. The decline in Tesla stock, which is losing its position in the Magnificent Seven pantheon, is more than offset by strong earnings from IBM (IBM) and ServiceNow (NOW) . In addition, the much higher-t

  5. Opalesque Exclusive: A global macro fund eyes opportunities in bonds[more]

    Bailey McCann, Opalesque New York for New Managers: Munich-based ThirdYear Capital rebounded in 2023, following a tough year for global macro. The firm's flagship ART Global Macro strategy finished the year up 1