News and Trends

After two very strong years for the stock market, valuations are now well above historical averages, with price-to-earnings ratios exceeding 22x. Elevated valuations reflect the market rally, steady economic growth, and enthusiasm surrounding technology and AI. However, stretched valuations also underscore a crucial principle of investing: the importance of diversification. Maintaining a well-diversified portfolio across sectors, asset classes, and risk levels is critical for managing market volatility as you work to achieve your financial goals.