Weekly Market Commentary 6-1-2026

“Market Valuations are Fair”
See what we have to say about the following:

 

 

 

• Stock Market Valuations are Fair (with P/E and rates graph)
  Stock valuations appear elevated but are justified by supportive economic growth, earnings expectations, and interest-rate conditions, as shown by the inverse relationship between yields and P/E ratios.

 

• Equity Risk Premium & Valuations vs. Bonds (ERP graph)
  The equity risk premium is near zero, indicating limited excess return over bonds today, though falling rates or rising earnings could improve equity attractiveness.

 

• Supportive Economic Cycle & Cash Flow Matters (inflation and cash flow graphs)
  A steady growth outlook supports equities despite inflation risks, while heavy AI investment is currently pressuring cash flows but may drive stronger future returns.

 

• Asset Allocation Insights (STAAC commentary)
  STAAC remains overweight equities—favoring technology and industrials—while underweight fixed income, reflecting confidence in continued growth and easing geopolitical risks.