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By Advisor Perspectives
The recent U.S. equity rally has coincided with a drop in volatility. But can that continue? Russ discusses.
While the equity rally seems to have at least temporarily stalled, stocks remain near three-month highs. The rebound in equity prices has been driven by a sharp and relentless bout of multiple expansion. In other words, investors are willing to pay more for each dollar of earnings. In the 45 days between the market’s low on Christmas Eve and March 1st, the S&P 500’s price-to-earnings ratio (P/E) expanded by just under 20%.
Read more at Advisor Perspectives.
Photo: Allan Ajifo