U.S. economy returns to growth after winter downturn. The U.S. economy grew at a seasonally adjusted 4% in the second quarter, according to numbers released last week from the Commerce Department, topping most economists’ forecasts. This was a nice rebound from the first quarter’s steep contraction of 2.1%--the worst single quarter downturn in five years.
What is an investor to do in the face of mounting evidence of an overvalued market? This question was posed by a handful of clients this week in response to last week’s blog highlighting that investors currently are downplaying risk; that several valuation measures are flashing caution warnings; and that investors should be prepared for
Are we in a bubble? A few clients have asked this recently—a natural one with the major indexes reaching new highs. The short answer: we’re probably not in a bubble, but cautious investors should consider reducing their equity bets. The stock market is high because corporate profits are high, and stock prices ultimately are driven