The S&P 500 (^GSPC) is trading near record highs on Monday. NFJ Investment Group managing director and senior portfolio manager Burns McKinney joins Wealth Host Brad Smith to discuss his current market outlook.
“Looking at these levels, it’s hard to argue on any metric that the US markets aren’t pretty rich. In fact, that S&P [price-to-earnings] PE multiple is higher than it’s been about 75% of the time over the last couple of decades,” McKinney lays out.
“Last year, markets climbed a wall of worry. We had multiple expansion that was driven by [the fact] we didn’t have a recession, inflation did get tamed, geopolitical conflicts didn’t spread, [and] we had a clear election outcome,” he explains.
“Now we’re in the complete opposite entering 2025,” McKinney says, outlining, “There’s the concern that rather than a wall of worry, there’s a wall of complacency, and as a result of that, investors really haven’t necessarily embraced a lot of the more defensive areas of the market where you can actually still get good value.”
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This post was written by Naomi Buchanan.
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