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.
2025-09-21 12:32:00 Sunday ET

Stock Synopsis: With a new Python program, we use, adapt, apply, and leverage each of the mainstream Gemini Gen AI models to conduct this comprehensive fund
2019-04-11 07:35:00 Thursday ET

European Central Bank designs its current monetary policy reaction function and interest rate forward guidance in response to key delays in inflation conver
2018-01-12 07:37:00 Friday ET

The Economist delves into the modern perils of tech titans such as Apple, Amazon, Facebook, and Google. These key tech titans often receive plaudits for mak
2019-04-17 11:34:00 Wednesday ET

Amazon CEO Jeff Bezos admits the fact that antitrust scrutiny remains a primary imminent threat to his e-commerce business empire. In his annual letter to A
2018-06-21 10:42:00 Thursday ET

Harley Davidson plans to move its major production for European customers out of America due to European Union tariff retaliation. European Union retaliator
2019-03-21 12:33:00 Thursday ET

Senator Elizabeth Warren proposes breaking up key tech titans such as Facebook, Apple, Microsoft, Google, and Amazon (FAMGA). These tech titans have become