Investment Advice on the Radio
Markets are once again extending their gains this morning. North American markets are set for their biggest weekly gain in a year. Investors are looking ahead to the start of earnings season next week in the US. Adding some additional strength to the TSX is the jobs numbers for June in Canada. They came out surprisingly strong. This is fuel for expectations that the Bank of Canada may raise interest rates on July 20th.
A recent survey by Bloomberg shows that economists have been trimming their forecasts for US GDP growth, though not enough to show the recovery is in danger of faltering. That being said, earnings will likely drive the markets over the next 2 weeks. With the price of the S&P 500 at about 1075 and earnings currently at about $70, the Price/Earnings ratio is about 15 times. Historically, the P/E has traded around 15 X on average in a sustainable bull market. The only question is if and when slower growth will slow earnings, suggesting the market is overvalued. One way to measure valuation and risk is to look at the P/E's in the companies you own. For a report on this give me a call at 868-5525 or visit yourlifeyourplan.ca.
A recent survey by Bloomberg shows that economists have been trimming their forecasts for US GDP growth, though not enough to show the recovery is in danger of faltering. That being said, earnings will likely drive the markets over the next 2 weeks. With the price of the S&P 500 at about 1075 and earnings currently at about $70, the Price/Earnings ratio is about 15 times. Historically, the P/E has traded around 15 X on average in a sustainable bull market. The only question is if and when slower growth will slow earnings, suggesting the market is overvalued. One way to measure valuation and risk is to look at the P/E's in the companies you own. For a report on this give me a call at 868-5525 or visit yourlifeyourplan.ca.
posted by David Allard at
11:03 AM
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