Is this bull market at exhaustion point?
The best way to look at this is to assess market valuation, economic growth and inflation pressures, monetary conditions and investor sentiment. 1) Share market valuations are mostly okay. Sure, measured in isolation against their own history shares are no longer dirt cheap. In fact, forward price to earnings multiples in the US and Australia are above long term averages. 2) The global economy is continuing to grow at an okay pace. While growth is constrained by past standards, a constrained and slower recovery is a longer recovery. 3) Global monetary conditions look set to remain easy. And the Fed's first interest rate hike is rightly getting pushed out in response to the dampening impact of the strong $US. 4) Finally, while investor optimism is up it’s a long way from euphoria. Read the full article: (VIEW LINK)