Tuesday, July 5, 2011

US Equity Strategy-Morgan Stanley & Co

A number of investors have recently asked about the valuation of the S&P500 as the market multiple has contracted from 13.5x to 12.7x in the first half of the year. The bull case on valuation takes three forms: multiples vs. history, high cash balances, and attractiveness relative to bonds.In our view, the multiple is likely to trend lower.

No comments:

Post a Comment