Geopolitical tensions (North Korea, Saudi Arabia) and the beginning of monetary tightening by the Fed could not stop equities from rallying. Most equity markets are expected to finish the year with double-digit gains while volatility sits at record lows.
Simultaneously there has been a sharp increase in equity valuations with U.S. equities now being more expensive than in 1929 (they were only more expensive in 2000). How long will the rally continue and what about the economic recovery being one of the longest on record?
On the following pages, we will try to find answers and provide you with a roadmap for the first half of 2018 and beyond.
