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.
2017-02-19 07:41:00 Sunday ET

In his recent book on personal finance, Tony Robbins recommends that each investor should rebalance his or her investment portfolio *only once a year* to in
2018-10-25 10:36:00 Thursday ET

Trump tariffs begin to bite U.S. corporate profits from Ford and Harley-Davidson to Caterpillar and Walmart etc. U.S. corporate profit growth remains high a
2019-04-26 09:33:00 Friday ET

JPMorgan Chase CEO Jamie Dimon defends capitalism in his recent annual letter to shareholders. As Dimon explains here, socialism inevitably produces stagnat
2017-08-01 09:40:00 Tuesday ET

In American states, all of the Top 4 richest people are self-made billionaires: Bill Gates in Washington, Warren Buffett in Nebraska, Michael Bloomberg in N
2020-02-19 14:35:00 Wednesday ET

The U.S. bank oligarchy has become bigger, more profitable, and more resistant to public regulation after the global financial crisis. Simon Johnson and
2020-03-12 09:32:00 Thursday ET

Google CEO Eric Schmidt and his co-authors show the innovative corporate culture and mission of the Internet search tech titan. Eric Schmidt, Jonathan Ro