In a recent report from the Edelson Institute, the S&P 500 has gone 267 days without a correction (market pullback) of 5% or more. This is the longest winning streak in 20 years!
Return on equity, a measure of the profit that companies make on the money invested by shareholders is at its lowest level since WWII!!
Meanwhile, investors complacency towards risk remains as measured by the very low reading of the Volatility index (VIX).
Share buybacks have dropped by 17.5% from a year ago, possibly indicating companies do not wish to buy shares back at high valuations. The S&P 500 valuation near 22 times earnings, ranks in the top 20% of historical readings.
My suggestion is to research options to hedge your portfolio against a possible market pullback.
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