Equity Valuations Remain Stretched

Here’s What We’re Thinking

May 15, 2015

We are holding above average cash positions as we continue to believe that Canadian and U.S. equities are fully‐valued and clear opportunities remain elusive. With Q1 earnings season drawing to a close, earnings estimates for the remainder of the year have declined with the consensus forecast now expecting a modest 0.5% increase in S&P 500 earnings over 2014. While Q1 earnings were better than expected (expectations had declined to overly pessimistic levels), top‐line results were lackluster.

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