Roberts Nash Advisory Group

The S&P 500 Landmark

“The S&P 500 reached a landmark last week: 372 days and counting without a correction of 5% or more. As the chart below shows, this is the longest sequence since 1960. Previous longer rallies were those beginning in November 1963 (369 days) and December 1994 (369 days). With the S&P 500 now trading at 18.6 times forward earnings, the odds of a correction have certainly increased. Yet we do not foresee a severe or extended pullback because of the underlying strength of the economy. As explained in our latest Monthly Equity Monitor, the nonfinancial components of the leading indicator are growing at the fastest pace in eight years, earnings revisions are still positive, and the yield curve remains unusually steep at this point in the economic cycle (i.e. the matured phase).”

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** I have prepared this commentary to give you my thoughts on various investment alternatives and considerations which may be relevant to your portfolio. This commentary reflects my opinions alone, and may not reflect the views of National Bank Financial Group. In expressing these opinions, I bring my best judgment and professional experience from the perspective of someone who surveys a broad range of investments. Therefore, this report should be viewed as a reflection of my informed opinions rather than analyses produced by the Research Department of National Bank Financial **

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