by Scott Martindale
President & CEO, Sabrient Systems LLC
With stocks holding up near their all-time highs in the face of a towering Wall of Worry, it is apparent that investors have been reluctant to sell for fear of missing out (FOMO) on continued upside.
However, at the same time, there has been something of a lid on further upside as valuations are at lofty levels, with the S&P 500 and Nasdaq 100 at forward P/Es of 22.4x and 27.0x, respectively, while the 10-year yield has been on the rise (recently eclipsing 4.30%), which tends to hold down valuation multiples. Indeed, many of the most prominent investors are wary, including the likes of Warren Buffett, Jamie Dimon, and Jeff Bezos, while corporate insider buying has slowed.
So, bulls and bears appear to be at a standoff, perhaps awaiting a catalyst from earnings season and the election outcome. And depending on how things transpire, markets are likely to experience some volatility (like today!). I have been anticipating a market pullback followed by higher prices by year end and well into 2025, buoyed by the combination of a dovish Fed and rising global liquidity—and potentially from reduced taxes and red tape in the New Year. In any case, any surprise that leads to a selloff—other than a cataclysmic “Black Swan” event—would likely be a buying opportunity, in my view.
But with the momentous election just a few days away (I can’t wait for it to be over!), I thought it might be a good time to share some timeless market wisdom, insights, and levity by compiling a list of 55 investing proverbs to live by. The first several have no particular author that I can discern, but for the rest I show a byline. Here we go: Click HERE to continue reading
