Video: The S&P 500 May Not Reverse, But It's Expensive
• A market can be stretched but not be at imminent risk of reversal - that is the case for the S&P 500
• Where a speculative appetite and expectation of complacency keep the buoyant, the foundation is eroding
• Technical, fundamental and market condition analysis suggest this benchmark is 'rich'
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Is the S&P 500 at imminent risk of reversal? Not necessarily. Is the stock market benchmark stretched on a technical, fundamental and positioning basis? Certainly. John Maynard Keynes said market's can remain irrational longer than we can remain solvent. Markets can diverge from qualitative and quantitative valuations as the herd focuses on a particular aspect of the environment. However, breaks from systemic evaluations of the market are inevitably - if eventually - transitory. Where does the benchmark US equity index stand according to the different analysis approaches? We weigh this financial focal point in today's Strategy Video.
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