Reported about 11 hours ago
In a discussion with Julie Hyman and Josh Lipton, ProShares Global Investment Strategist Simeon Hyman describes the US equity market as exhibiting 'rational exuberance.' He highlights that the S&P 500 is less leveraged compared to two decades ago, leading to higher returns on assets. Although earnings returns have only improved slightly, the reduced leverage indicates stronger underlying profitability. Hyman also discusses the bond yield's influence on stocks, noting changes in the yield curve following the Federal Reserve Chair's comments on inflation. While considering a 25x multiple rational, he warns against exceeding 30x.
Source: YAHOO