Corporate Earnings Growth Predictions Could Cause Stock Prices to Continue Climbing
Markets U.S. stocks are expensive by almost any measure. Here's why they could keep rising anyway.
It’s become a common refrain among those who believe the 2023 stock-market rally seems too good to last: by almost any measure one chooses, equity valuations in the U.S. are looking stretched.
While this point is generally conceded by equity analysts, it glosses over another debate of potentially greater import. What impact, if any, do so-called fundamental factors like valuation have on stock-market performance, and could we really see them put the breaks on a momentum-driven rally?
At least for now, the answer may be that valuation is taking a back seat to hopes tied to artificial-intelligence and the strength of the U.S. economy fuel optimism that could continue to push the market higher.
VIEW HEREThe thoughts and opinions expressed in the article are solely those of the person speaking as of 8/4/2023. The discussion of individual companies should not be considered a recommendation of such companies by the Fund’s investment adviser. The viewer must make his/her own assessment of the relevance, accuracy, and adequacy of the information contained in this article, and make such independent investigations as he/she may consider necessary or appropriate for the purpose of such assessment.
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