From our quarterly commentaries to our blogs, Granite Group has expounded on the market valuations being simply too high. We have cautioned investors not to add to equity allocations in this higher valuation environment. This premium valuation could not sustain itself indefinitely!
The recent down-turn in the equity markets might be blamed on the FED pulling back on its stimulus or on the global political instability. However, this is not a time to panic: we are not suffering from a fundamental crisis that could lead to a sell off. The actual fact of the matter is: the high valuation of equities has been the issue. When political headlines (with little financial impact) affect valuation, it presents opportunity! Politics and unrest come and go, but we believe that equity valuations are becoming more reasonable. It is important to remember to be pragmatic and assess what is vital to investing.
Please call us at 203-210-7814 if you would like to discuss our commentaries or blogs. If you are a retirement plan client, please refer to the internal GGA Educational Resource section when you login to review your account.