Yahoo Finance Quoting DataTrek’s Colas on Valuations
By datatrekresearch in IN THE NEWS
Excerpt from Yahoo Finance quoting DataTrek co-founder Nick Colas:
"DataTrek co-founder Nicholas Colas also addressed why high valuations might not be a reason to stay out of stocks in a note to clients on Tuesday.
"As uncomfortable as owning a 22x S&P 500 might be, let’s remember that math is not a useful investment edge," Colas wrote. "This is especially true over 1-2 years if no catalyst appears to hurt investor confidence. The bottom line here is that if 1) the US economy continues to grow and 2) the incoming administration proves as business friendly as markets hope, then valuations could easily expand from here."
He added: "We would not be at all surprised to see the S&P 500 trade for 25x forward earnings sometime in 2025"...
Read it here on Yahoo Finance.
