- As we talk to investors, the number one question is "Are we in a bubble?" We understand the sentiment, particularly as stock prices march higher despite the frustrating persistence of the virus.
- Despite recent price weakness in certain sectors (e.g., Banks), we are encouraged by the limited signs of credit stress across the market.
- Though traditional valuation metrics look extended, the possibility of speculative excess can persist for longer than might seem appropriate.
For further details see:
Bubble Talk, No Big Market Top Yet, Economic Recovery Intact - Market Strategy Weekly - January 29, 2021