Overview

• The S&P 500 has surged about 20% over the past two months and trades less than 3% below its February peak.
• Forward price-to-earnings multiples exceed 21 times projected earnings, roughly 35% above historical averages.
• Last week’s Israel-Iran missile exchanges drove oil prices up 14% and led to a 1.1% one-day drop in the index.
• Institutional clients have offloaded US equities for a fifth straight week, the longest outflow streak since at least 2008.
• Investors are rotating into real estate, energy and pharmaceutical sectors as Doug Kass warns of seven lean months ahead.