Saturday, 23 June 2018

Markets rise, equity share of household assets nears all-time high

Markets were mostly higher on Friday.

The S&P 500 rose 0.2 percent, the STOXX Europe 600 jumped 1.1 percent but the Nikkei 225 fell 0.8 percent.

Oil rose after OPEC members came to an agreement on production. West Texas Intermediate crude surged 4.6 percent and Brent rose 3.4 percent.

Meanwhile, Mark Hulbert at MarketWatch said that the stock market is showing signs of a long-term top.

“The share of household financial assets currently invested in equities is already close to an all-time high,” he said. “It is far more likely to fall in coming years than it is to stay at its lofty level, much less go higher.”

Hulbert added that the S&P 500's average annualised 10-year return was 16.4 percent following the 20 percent of times the equity share of household assets was lowest and only 3.9 percent following the 20 percent of readings in which the equity share was highest.

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