To sell or not to sell, that is the question
In this first of a six-part series, financial markets expert, B V Krishnan shares his outlook on the historicals of the US markets, as they continue to drive the equity market sentiment across the board.
A historical analysis
Let us start with a couple of pieces of historical analysis, which will be the focus for this note, before we move to the fundamentals in the next note.To sell or not to sell
While there are noted limitations to the analysis provided by these ratios, they do point to a market that remains elevated in valuation terms, especially for a strong long-term rally to occur, from where we stand, if one were to take a consistent look at historical market corrections over the past century.So “To sell, or not to sell” The number of unknowns standing where we are remains high, telling us that risk remains heightened, while the knowns point to the need to adopt caution when we value equity securities. So, market valuations, in aggregate, point to further corrections ahead.
*Tomorrow: The Fundamental Outlook - It is a long and grinding road ahead Disclaimer: The thoughts in this note are not meant to provide, and do not purport to be, investment advice but are rather in the nature of a narrative about the economic and financial markets.