|Russ Koesterich, CFA
It’s All About The Multiples
Summary: Earnings have been beating lofty expectations but the market hasn’t been able to maintain momentum. Positive earnings results are likely being outweighed by stretched valuations and tightening financial conditions. As multiples contract, investors have been less willing to pay more for earnings which has led to a slowdown in price appreciation. Additionally, higher volatility and rising interest rates make high valuations less attractive.