The major US equity indices are down today but are still relatively flat on the year

Jay Soloff

Argonath Financial

The major US equity indices are down today but are still relatively flat on the year. The two big questions investors are contending with: are valuations too high and will the Fed accelerate the pace of its taper. As earnings start rolling in this week, the market's lofty valuations will be put to the test. In many cases, actual data won't support the high prices investors are paying for certain stocks. That's not to say there won't be upside surprises as well - but odds favor the downside given the current high valuation environment. On the other hand, the entire market could be set for a pullback if the Fed decides to speed up the pace of its stimulus reduction. Friday's disappointing jobs report makes this scenario less likely, but there's still plenty of economic news to come.


3 topics

Jay Soloff
Research Analyst
Argonath Financial

I'm an investments analyst for a US-based independent investment research firm. My focus is on economics, options, and all types of stocks, but especially tech, Internet, and renewable energy companies. I have experience as a options market...

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.