Stay informed with the latest updates from the Rothman Investment Management team and explore articles and resources to support your financial journey.
Damir Tokic calls the current market the “Mother of All Bubbles.” This is due to what he describes as a “bubble in earnings”, with a historically high 42x Shiller Price/Earnings (P/E) ratio applied to these peak earnings.
The S&P 500 rebounded 10.8% in the quarter, mostly on valuation expansion, as the Schiller P/E (price based on inflation-adjusted earnings over the last ten years) jumped 9.8%. At 37.9x, it is 72% above its 50-year average, and 41% above its twenty-year average.
Economic and Valuation Update - looking at tariffs, economic trends and valuation levels. Educational spotlight looking at how modern portfolio theory informns portfolio construction. Book Review - Antti Ilmanen's "Investing Amid Low Expected Returns".
