Salient to Investors:
- Todd Lowenstein at Highmark Capital Mgmt said people are selling out of fear in a market that is really acute to geopolitical risk, given current valuations.
- John Canally at LPL Financial said markets have to determine if this is an escalation of the conflict.
- 60 percent of financial professionals said the equity market is close to unsustainable levels and 14 percent said it was already in a bubble. Almost 33% said the lower-rated corporate debt market is overheated. The majority expect increased volatility within six months.
- James Bullard at FRB St. Louis said US labor market gains and inflation accelerating towards 2 percent may prompt an earlier Fed exit from stimulus.
- Fed Chair Yellen said asset valuations are not out of line with historical norms.
- The S&P 500 is at 18 times earnings, close to a 4-year high valuation.
Read the full article at http://www.bloomberg.com/news/2014-07-16/u-s-futures-drop-after-dow-record-as-oil-extends-advance.html
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