Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Goldman Sachs Analyst Warns: Highest Valuations Since 1900

Published 11/30/2017, 10:13 AM
Updated 11/30/2017, 10:13 AM
© Reuters.

© Reuters.

Investing.com - In a Wednesday note, Goldman Sachs (NYSE:GS) warned of the end of the current Bull Run, after years of stretched valuations.
Christian Mueller-Glissmann, an analyst at Goldman Sachs, said "We are nearing the longest bull market for balanced equity/bond portfolios in over a century, boosted by a ‘Goldilocks’ backdrop of strong growth without inflation."
Mueller-Glissmann added that the average valuation is expensive across all assets, and that strong valuations should become a ""speed limit for returns"".
However, a Reuters survey of 13 fund managers, conducted in November, showed equity allocations in a model global portfolio rose to 57.2 percent from 56.7 percent – indicating that professional money managers are still piling up cash in the stock market.
The current S&P 500 PE ratio is over 25, miles higher than the historical mean of 15.6 and median of 14.5 – suggesting stocks are indeed in rare territory as far as valuation goes.
With 2017 coming to a close with a possible Fed rate hike in December, investors will be closely following how the beginning of 2018 unfolds for stocks and all financial assets.

Latest comments

Highest before the tax cuts but who knows after the tax cuts by President Donald Trump?
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.