It’s been a long time since we have experienced an economic recession and a long-lasting major stock market correction; almost 11 years in fact. Investors remain optimistic about the economy and their investments and for good reason, the economy continues to perform.
Notable Number four of this week’s Weekly Market Review details that later this week, we may receive data related to Gross Domestic Product (GDP) achieving a 3% annual growth for the first time since 2005. Certainly, corporate earnings have increased significantly during this long period of economic stability, but so have the stock prices. If corporate earnings slow down or stop growing and the price of stocks continue to climb, the result would be an over-priced stock market. Many think, and some data suggests, that the US stock market, while healthy, is starting to be a bit expensive when valued based on current corporate earnings. Prudent investors have been asking themselves the hard question of “Do I have too much in US stock right now?” The answer is certainly not a one-size fits all, but I do believe it is the right question to be asking yourself right now. We are ready to help you reason through that question and come to the appropriate solution, based on your personal situation.
As always, we hope you find the Weekly Market Review both interesting and informative.
Trevor N. Coe, CFP