Evergreen Investments' Market Update

It is important to remember that plenty of cash remains on the sidelines with a market that is willing to pay 33x to earn less than 3% on 10-year Treasuries, $4 trillion is sitting in money markets (more than 40% of equity market capitalization), and up to $500 billion in private equity is waiting to take advantage of red-tag sales with 50% discounts on Price to Sales, Price to Book Value and Price to Cash Flow. In addition, history has shown that any time the economy has contracted by four percentage points or more, the S&P 500 Index has climbed by 25%, on average, twelve months after the nadir in output, justifying the possibility for a move through the top end of our trading range later this year.

Please click here to continue reading Evergreen Investments Market Update, by Chief Market Analyst, John K. Lynch.