An analyst at BoA says that market sentiment is overall negative (this is despite the S&P500 heading back into a bull market Thursday!) but that even so many stocks are sitting at high valuation levels:
- “Stocks do trade at statistically rich levels on most measures. But where one might expect multiples to expand with inflows and compress with outflows, the correlation between equity flows and valuations is effectively zero”
And notes, (ps this is of relevance to both day traders and longer-term traders):
- valuation on normalized earnings may have “strong explanatory power” on long-term returns, but low predictive power over near-term returns
Yep, day traders – continue to fire up your tech analysis, in whatever format you use. And for the longer-term folks, keep at the fundamentals. There is something for everyone in this market, regardless of which church you are in!
This article was originally published by Forexlive.com. Read the original article here.