What ever happened to “Sell in May and go away”? As the markets continue to climb the “Wall of Worry” we are compelled to let you know that markets might be a little ahead of themselves. At 17 times this year’s earnings and 16 times next year’s earnings, we feel the market is fully valued in the short term. We would think a short term pullback, not a correction is in order. Granite Group is not suggesting that we are going into a big market downturn or a recession, we are simply saying that it would be more prudent to wait for opportunities with new cash. From here, we see very little upside for the year end.
Please feel free to call us directly at 203-210-7814 with any questions or concerns.