We’re still enjoying the third-longest bull market in history. The Dow is selling at 20.4 times earnings, the S&P 500 at 25 times earnings per share. Nevertheless, Liz Ann Sonders of Charles Schwab sees “a bull market… undisturbed by myriad actual or potential negative events and momentum favors the bulls for the foreseeable future.” For Sonders, “the long-running bull market continues and has shown few signs of faltering. One major sign of being in the late stages of a bull market is evidenced by the intense speculative action in the FAANG group of stocks: Facebook, Amazon, Apple, Netflix and Google (which is actually Alphabet). In other words, if short-term interest rates rise higher than longer term rates, it’s historically been very negative for stocks, but not right away.

Source: Forbes November 21, 2017 17:26 UTC