Clues and commentaries on the global prospects for stocks, bonds and alternatives.
Selected Document
Neither Depressed Nor Exuberant
ClearBridge | July 7,2014

Hersh Cohen offers his opinion on some of the best values in the equity market

  • Last year equities finally attracted more investors and stocks rallied five times as much as corporate earnings, returning prices to more normal price-earnings ratios
  • Though fear is gone, we do not have the euphoria that marks tops. We characterize prices as roughly fair value, which is why we have projected a flattish to slightly higher market for the year, with dividends and buybacks providing support
  • Thus far, the market is ignoring geopolitical risks, as chaos in the Middle East has not translated into sky-high oil prices nor scared investors into selling stocks. That needs to be watched, as does the recent trend of too many people and institutions making riskier bets in the quest for yield