Salient to Investors:
Liz Ann Sonders at Charles Schwab said:
- The secular bull market is intact as valuation and sentiment are supportive – this bull market will be the best is our lifetime.
- US businesses are sitting on huge cash levels not seen since WWII and we will see an increase in capital spending this year.
- Inflation is in check, held back by money that is not multiplying and that has also kept economic growth low.
- We are a long way from the point where lending matches deposits.
- For the first time since WWII, US manufacturing is up 3 years in a row, though from a very low base and still only 13% of the economy.
- Forward P/E ratios are around the historic median level and bull markets rarely stop at the median P/E. The average trailing P/E of every bull market since the 1950s is 18.7 versus the current level of 16.6.
- Profit margins are at or near all-time highs but historically is not a problem for the market.
Read the full article at http://www.investmentnews.com/article/20140128/FREE/140129892#
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