Comments from Prateek Mehrotra, CIO of Endowment Wealth Management, Inc., were printed in InstitutionalInvestor.com earlier today in an article titled Portfolio Perspective: Warning Signs for Your Client’s Stock Market Exposure. In the article, Prateek discusses a number of valuation metrics that he follows, many of which are extended. This leaves the market potentially vulnerable to a “mean-reversion” type correction, although there is room for further upside in equity prices. He further comments that “Portfolios can be cushioned from a U.S. sell-off by diversifying across hedged equity, foreign developed and emerging-markets stocks, nontraditional fixed income, master limited partnerships (MLPs), real estate, commodities and other liquid alternatives”. The entire article can be found at the bottom of Institutional Investor’s Daily Agenda column.
Endowment Wealth Management CIO: “While there is room for further upside,most metrics suggest equities are overvalued”
