2017-10-27 06:35:00 Fri ET
stock market gold oil stock return s&p 500 asset market stabilization asset price fluctuations stocks bonds currencies commodities funds term spreads credit spreads fair value spreads asset investments
Leon Cooperman, Chairman and CEO of Omega Advisors, points out that the current Trump stock market rally now approaches normalization. The U.S. stock market is neither cheap nor expensive with a forward P/E ratio of 22x, which is a little higher than the long-run average P/E ratio of 16x to 18x. Most conditions for a bearish stock market correction are not present. For instance, bull markets typically end in overvaluation, whereas, Cooperman shares his wise and upbeat observation that the current stock market rally can continue north for another 15% margin. However, Cooperman suggests several reasons for bear markets:
(1) Inflation should accelerate for substantial interest rate liftoff;
(2) The relative likelihood of an NBER recession becomes real;
(3) The Federal Reserve becomes hawkish and aggressive; and
(4) Some major geopolitical event reverberates across America.
Despite these reasons for bearish stock market normalization, we expect the Trump stock market rally to continue insofar as the Federal Reserve gradually implements the interest rate hike once in December 2017 and then 3 to 4 times in 2018 with target core inflation around 2% to 2.5%, especially in the absence of any clear and present dangers in the quasi-diplomatic relations between the U.S. and *nuclear nations* such as North Korea and Iran.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2019-01-19 12:38:00 Saturday ET

U.S. government shuts down again because House Democrats refuse to spend $5 billion on the border wall that would give President Trump great victory on his
2019-01-15 13:35:00 Tuesday ET

Americans continue to keep their financial New Year resolutions. First, Americans should save more money. Everyone needs a budget to ensure that key paychec
2017-12-09 08:37:00 Saturday ET

Michael Bloomberg, former NYC mayor and media entrepreneur, criticizes that the Trump administration's tax reform is a trillion dollar blunder because i
2020-09-03 10:26:00 Thursday ET

Agile business firms beat the odds by building faster institutional reflexes to anticipate plausible economic scenarios. Christopher Worley, Thomas Willi
2019-05-23 10:33:00 Thursday ET

Berkeley professor and economist Barry Eichengreen reconciles the nominal and real interest rates to argue in favor of greater fiscal deficits. French econo
2019-06-21 13:33:00 Friday ET

Amazon and Google face more intense antitrust scrutiny. In recent times, Justice Department and Federal Trade Commission have reached an internal agreement