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Tax, Financial Planning, Investments, Stock Market Robert Amato, CFP®, CIMA® Tax, Financial Planning, Investments, Stock Market Robert Amato, CFP®, CIMA®

What Does Stock Market Valuation Tell Us About Future Returns?

Many different measurements can be used to value the stock market. Of the most thirteen popular measurements listed below, eight are in the highest valuation category (Very expensive), four are in the second highest category (Expensive), and only one is in the middle category (Fairly valued):

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Tax, Financial Planning Robert Amato, CFP®, CIMA® Tax, Financial Planning Robert Amato, CFP®, CIMA®

Is the Stock Market Trending Towards Value Stocks?

In 2023, the Magnificent Seven (Mag 7) stocks garnered their name from their significant outperformance compared to the remaining 493 stocks in the S&P 500. However, in the first quarter of 2024, we are seeing a greater divergence of returns amongst these seven stocks with Apple and Tesla in negative territory for the year. This could lead to the Mag 7 stocks no longer outperforming the market to the degree they have in the past.

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