PEY - U.S. Stocks Look Overbought. Will It Matter (Anytime Soon)?
2024-07-11 12:20:00 ET
Summary
- The S&P 500 Index closed sharply higher on Wednesday, rising to yet another record high.
- Forecasting S&P 500 returns based on earnings yield and dividend yield models continue to project modestly negative returns.
- What is clear is that for investors with a relatively a low risk tolerance and/or a short-medium time horizons, the case for rebalancing looks timely.
The S&P 500 Index ( SPX ) closed sharply higher on Wednesday (July 10), rising to yet another record high. Beta risk, in other words, is making more investors look like geniuses this year. The question is whether the increasingly strong ex post returns are borrowing from the ex ante data?...
U.S. Stocks Look Overbought. Will It Matter (Anytime Soon)?