The US market is massively overpriced – but is that a problem?
The US bull market is now 110 months old, and many stocks are looking expensive – despite reports of exceptional profit margins. Which is why we continue to hold a larger proportion of our portfolio in cash than many, if not most, of our peers.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
derek hall
:
Roger,
My concern about the USA is structural. The middle class has been shrinking, down from over 60% a couple of decades ago to about 50% today and it is stressed, hardly the engine to power growth. The middle class is the moat that protects the castle. This trend is happening throughout the western world as inequality dramatically increases. In my opinion we are not too many years away from serious social unrest as the politicians dither.
Derek Hall