Update- Market Metrics: S&P 500 Index
So where are we in the cycle?
History is never a predictor but it does help to serve as a guide and we have attached two charts for you to review.
The first lists the 10 biggest declines form all time highs for the S&P Index with commentary on the causes. The take out is that crashes are very common and should be viewed as opportunities to buy more quality assets at discounted prices.
The second is the valuation of the S&P 500 Index against it historical averages over the past 25 years. The surprise is that listed companies valuations in the US when taken as a whole are not excessively expensive when compared against their 25 year average which explains why the S&P 500 has set a new all time high.
The numbers imply that there is no immanent crash but once the US Federal Reserve begins to increase interest rates the situation will change very rapidly and could present buying opportunities.
At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me via Contact Us or to call me on +61 2 9267 2322.
30th-April-2015 | 
