UDN - Mixed Signals Put The Market In A Holding Pattern
The S&P 500 has rallied almost 17% in the past seven weeks, but it is still down about 6% from its all-time high of almost 5 months ago. Corporate profits continue to rise - trailing 12-month earnings are up almost 22% in the past year - yet P/E ratios (how much the market is willing to pay for a dollar's worth of earnings) have dropped by over 20% in the past year. Key Treasury yields have dropped precipitously since their early November '18 highs: 10-yr yields have fallen 55 basis points, and 5-yr real TIPS