In the 4th quarter of 2018, we said; “I do truly believe when the dust settles a lot of these fears ruling the market today will turn out to be unfounded and never actually materialize. Per my analysis, it does look like there is significant upside to the markets when things settle down. But until then, we need to do the best we can with the cards we have been dealt.”
In the 1st quarter, the S&P got off to the best start to a year since 1998. In fact, the price appreciation for the market was 13.07%. With this, it does appear that the fears that overwhelmed the market in the 4th quarter of 2018 got ahead of themselves and pushed the market down past a rational valuation level.
The question moving forward will focus on how high can the market go while the rate of earnings growth is slowing?
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