We are at FTSE 100 highs again – it has just taken 15 years to achieve it. Unfortunately this has coincided with PER valuations that, while justifiable, are no longer that cheap either by historical or international comparison.
Earnings momentum has stalled. The balance of forecasts are declining and while much of that is attributable to a fall in commodity prices, or stock specific in its nature, this is causing concern that equity markets are fully priced. Further domestic political risk adds to a general uncertainty.