The markets love certainty, and when uncertainty arises, the markets become nervous. With House Speaker Nancy Pelosi formally looking into the impeachment process, the markets worry. Even though there could be a short term stock market impact from these actions, as we have written several times, politics do not matter when it comes to the long run performance of the stock market. On a valuation perspective the markets are not historically considered cheap, at almost 18 times this year earnings and almost 17 times next year earnings. In the short term, we would not favor allocating to equities at this valuation level, however the US economy is relatively stable, so if there is any major pull back, that would present a buying opportunity in certain sectors.
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