Here’s What Caused The Market Pullback

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Find the related analysis from Jurrien Timmer here: http://bit.ly/2Ggs63C Jurrien Timmer, director of global macro for Fidelity Investments, published his analysis following the recent US stock market pullback. According to Timmer, the recent pullbacks were the result of 2 market imbalances. ONE imbalance was caused by the stock market gaining twice as much as was justified by the recent tax cuts. THE SECOND imbalance was the stock markets lack of attention to the sharp rise in bond yields.  Timmer says the market is now in much better balance, with strong earnings growth pushing the market higher, but higher rates acting as a headwind for valuations. Meaning stock prices should rise less than earnings growth, not more than earnings, as they have for several years. With double digits earnings growth He believes this is still a bull market scenario, though a late cycle one. -------------------------------------------------- Follow Business Insider on Twitter: https://twitter.com/businessinsider Follow BI on Facebook: http://bit.ly/1W9Lk0n Read more: http://www.businessinsider.com/ -------------------------------------------------- Business Insider is the fastest growing business news site in the US. Our mission: to tell you all you need to know about the big world around you. The BI Video team focuses on technology, strategy and science with an emphasis on unique storytelling and data that appeals to the next generation of leaders – the digital generation.

Published 2018-02-15 · Watch on YouTube ↗
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