News of a new strain of Covid, the Omicron variant, sent global equity markets tumbling on November 26th. It is clear by recent market action and by indicators we follow, we are no longer in the highly speculative market that began in January and involved stocks such as GameStop and other “meme” stocks.
With more investor skepticism in markets now, we don’t believe we are near a final market top, often characterized by a “melt up” of many equities. Investor skepticism over valuations is warranted but overlooks to some extent the tremendous progress companies have made in boosting earnings and, especially, cash flows.
Click below to read Derwood S. Chase, Jr.’s full November 2021 market commentary.