WATCHING FOR AN EQUITY MARKET MULTIPLES CONTRACTION:

10Y TERM PREMIUM & BOND VOLATILITY

US Equity Market Multiples are likely to continue to remain elevated as long as the 10Y Term Premium is negative and Bond volatility remains low.

Though the market is clearly at historically high levels only seen three times in history the market is likely to keep portfolios allocated towards risk until the bond market sends its signal (above).

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