As part of Merk's in-house research we regularly evaluate a consistent set of charts covering the economy, equities, fixed income, commodities and currencies. The aim is to keep our eyes open and to look through the noise of the headlines, avoiding the distractions of sensationalized click-bait. In sharing this content, we offer a cross-check to your own thinking and aim to add value to your own process.
Today's topic: the U.S. Equity Market
"The decline in equities in October may be primarily related to the shift higher in ... rates... putting downward pressure on valuation multiples.... business cycle backdrop..still looks positive for the U.S. equity market...however, some measures of market breadth are not far from levels that are historically consistent with major market tops..."
We invite you to download a copy of the chart book (PDF); or to view the video: