Just because valuations are high doesn't mean that the stock market can't rally strongly

Recently, a lot of investors have been pointing at the U.S. stock market's high valuations. They think that high valuations mean the S&P will underperform. THis just isn't true.

1. Valuations are higher b/c long term interest rates are much lower than they used to be.
2. valuation indicators aren't good at picking bull market tops
3. stock markets usually rally the fiercest in the final years of a bull market.

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Submitted June 17, 2017 at 03:00AM by markethistory http://ift.tt/2tcKEMw