3 Anomalies Within A Top Heavy Stock Market

Summary

  • It was another good month for equities, with the NASDAQ rising nearly 6.9% in May, while the S&P 500 gained 4.8%.
  • That leaves the S&P 500 trading at north of 21 times forward earnings, despite economic growth that appears to be slowing.
  • This leaves investors getting very little 'risk premium' for holding stocks, given the 'risk-free' yield on the 10-Year Treasury at 4.5%.
  • This is one of several anomalies in the market investors should at least be aware of as we open trading in June.
  • Looking for a helping hand in the market? Members of The Biotech Forum get exclusive ideas and guidance to navigate any climate. Learn More »

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The NASDAQ briefly closed above the 17,000 level early last week for the first time in the tech-heavy index's history. It gave back some of the those gains by the end of the holiday shortened week. However, the NASDAQ

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This article was written by

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Bret Jensen has over 13 years as a market analyst, helping investors find big winners in the biotech sector. Bret specializes in high beta sectors with potentially large investor returns.

Bret leads the investing group The Biotech Forum, in which he and his team offer a model portfolio with their favorite 12-20 high upside biotech stocks, live chat to discuss trade ideas, and weekly research and option trades. The group also provides market commentary and a portfolio update every weekend. Learn More.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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