๐ Markets have “priced in” a goldilocks economy with lower interest rates on the horizon. In anticipation, the S&P 500 P/E ratio has soared to 19.8x, surpassing historical averages. ๐
๐ This forward-looking PE ratio uses next-twelve-month earnings estimates. Valuations remain above average after the market rally of the past year. โฐ
๐ Now, investors need to maintain perspective in this environment.๐ก
๐ผ Investors should focus on the trends that began last year as the economic and market situation unfolds in 2024. However, highly-priced stocks are especially vulnerable to disappointing news. ๐ฏ
For more insights, watch my 5-minute video for 5 key lessons from 2023 and valuable takeaways that could shape the future for investors. https://lnkd.in/eFnjRTn2
๐ช The bottom line? Staying diversified across stocks and bonds remains the best way to achieve long-term financial goals. ๐
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