Joel Greenblatt’s Market Observations

US Equity Markets Remain Very Expensive (based on our 28-year valuation history) S&P 500 and Russell 1000 are both in the 15th percentile towards expensive When markets have been at these levels in the past, one-year forward returns have averaged 2-4% and two-year forward returns have averaged 7-9%, which is well below normal returns historically […]

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Goldman Sachs 2018 Midyear Outlook: (Un)Steady as She Goes

In our 2018 Outlook, we discussed six steady factors supporting the outlook: 1) economic growth; 2) equity markets; 3) strong, relatively steady and broad-based earnings growth; 4) regime shift in inflation volatility; 5) low probability of recession; 6) disdain for this rally Also highlighted six unsteady factors threatening the outlook: 1) domestic politics; 2) rise […]

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