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TitleAre Stocks Bubbling Over? Time To Bail?
Date12.01.13
News OrganizationUT-San Diego
Summary

UT-San Diego--...Alan Gin, University of San Diego: Answer: NO

While there may be some minor pullbacks, the environment for stocks remains strong. Of particular importance is the low interest rate environment, which is likely to continue with the appointment of interest rate dove Janet Yellen to chair the Federal Reserve. Also, corporate profits remain strong, with the S&P 500 trading at about 15 times next year’s earnings, which is not an out of line P/E ratio. Companies have been able to maintain profits even in a weakly recovering economy by holding down costs, particularly labor costs, which is contributing to the weak recovery. Thus, a good stock market doesn’t necessarily mean a good economy... (Full Story)

 

Linkhttp://www.utsandiego.com/news/2013/dec/01/econometer-stock-market/