Wall of Worry

Updated December 21, 2021 - Jeff Hansen

Immediate concerns...

1. COVID and the economic effects of containment measures.  

2. High stock valuations - The DJIA is at historically high valuation levels using current and historical measures, such as price-to-book value (PBR), price-to-sales (PSR), and price-to-earnings ratio (PER).  Valuations are less extreme if the ratio's a done with the expected future sales and earnings. These forecasts tend to be unreliable at major inflection points in the market.  

3. Hawkish Fed.  The US Federal Reserve has said that