- Market valuations are not cheap but not overly expensive either.
- In 2016, as with most recent years, gains have come mostly from an expanding market multiple. That is not sustainable.
- We could see a market multiple contraction if bond yields grind higher.
- In a few weeks, Q3 earnings season will start, this is poised to be the first quarter with year-over-year earnings growth in almost two years. That is a good thing.