corporate bonds

Should We Sell Stocks Because the Market is Rich?

As the decorations my wife puts up around our house read: “Happy Fall, Y’all!” The third quarter of 2017 had its fair share of global headlines, starting with a queue of hurricanes ravaging Haiti, Puerto Rico, and a giant portion of the southern U.S. The headlines didn’t stop there, though. President Trump continues to trade barbs with North Korean dictator Kim Jong Un every few hours, Equifax had 44% of Americans’ personal information stolen, and to top it off we’re still uncovering more and more evidence of Russian meddling in our presidential election last year.

So has any of that spooked U.S. equity markets? Absolutely not! Thus far in 2017 we’ve had historically low volatility. Only 5% of 2017’s trading days thus far have seen the S&P 500 move by more than 1% in either direction. This is by far the lowest number ever (since intra-day trading began being recorded in 1982, at least).