Granite Group has discussed market valuations and earnings driving this market forward many times this year. According to RBC, approximately 28% of the companies have reported earnings and the S&P 500 ex-financials surprised to the upside by 1.9%. However, revenues missed by 0.3%. Including financials paints an uglier report. As GGA has stated before in our previous commentaries, for the market to make any dramatic move higher, the S&P would need a better earnings season. As the S&P stands now we are trading at roughly 16 times this years earnings and 14.5 times next years. Unless earnings start picking up, in our humble opinion, this would make the markets fairly to slightly over valued. The lack of real earnings growth in the S&P 500 should translate into just plugging along. We are still looking for slightly higher markets at the end of the year, but we are well below the rest of the Street
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