Read the highlights of this week’s commentary from Helios:

  • On Friday, the S&P 500 Index closed above 5,000 for the first time and the Nasdaq 100 hit its 11th all-time high of the year. The S&P 500’s momentum, with gains in 14 of the last 15 weeks, has marked its best run since 1972, driven by optimism over corporate earnings and AI.
  • Stocks are becoming more expensive, posing a challenge for investors looking to enter the market now or increase their investments. The S&P 500 has not seen a daily decline of 2% for almost a year.
  • The price-to-earnings ratio of the S&P 500 has reached 24 times reported earnings, surpassing pre-pandemic highs, and approaching levels seen at the peak of the last bull market, with the “Magnificent Seven” stocks being twice as expensive.
  • The pandemic-induced commercial real estate slump is raising investor concerns as banks face risks from falling property values and rising loan losses. Before Congress, Treasury Secretary Yellen confirmed regulatory efforts to bolster bank reserves and liquidity in response to defaults from increased borrowing costs and changing tenant demands.

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