Elevated Equity Valuations Seeking Justification
High stock market valuations are causing investors to seek justification through corporate results and profit outlooks.
Too little corroboration in the last 3 days to call a trend (2 articles). Watching for it to gain traction.
"“Big tech earnings will help to confirm whether or not the sector’s share price gains in recent weeks are justified,” said David Laut at Kerux Financial."
"Passive Investing Drives The Current... A growing number of passive investors are actively trading, rotating in and out of popular narratives and themes."
"That skepticism toward richly valued mega-cap tech has pushed investors to look elsewhere for returns, and biotech has been a clear beneficiary."
"Rather than completely avoiding US equities or tech, selectivity based on reasonable valuations and proven profitability remains key."
""Valuations right now are fairly reasonable. I don't think investors have unrealistic expectations.""
""Investors will look for strong company forecasts to justify sky-high valuations.""
"Valuations, while certainly high by historical standards, have been at a fairly consistent level, benefiting from the economic recovery."
""Valuations, while certainly high by historical standards, have been at a fairly consistent level, benefiting from the economic recovery.""
"these market wobbles could be a good excuse for investors to sell shares and bank some profits."
""Investors are digesting earnings that came out overnight and this morning, and taking a look at the fundamentals of what’s going on in specific companies, as well as any outlook that can be provided to try to justify valuations.""