Chart of the week: valuation as decisive factor
Valuation is often not the immediate trigger for a stock market turnaround. But it is a decisive factor in the amount of upward or downward potential for the market.
Re-rating
Since its low point in mid-June, the S&P 500 Index has risen 18 per cent. Over the same period, earnings per share rose by less than 2 per cent. There has thus been a considerable re-rating of equities over the past two months.
Commentary: Time is running out and inflation is rising
Only the first statement is certain. The first half of 2021 has gone by so quickly that we haven’t had a chance to pay proper attention to all the exciting economic and financial developments. Economic indicators have shown unprecedented recovery in both the U.S. and Europe in the first six months of 2021, resulting in exponential growth expectations for corporate earnings on both sides of the Atlantic. The European industrial outlook, in particular, is taking off.