Stock Market Could Fall 30%, says Legal & General

A correction is inevitable at some point and some think 2018 will be the year. But to what extent? Legal & General is bracing for at least 30% re-pricing

David Brenchley 15 December, 2017 | 1:19PM

Next year could spark the end of an eight-year-long bull market.

With global stock markets running at or near all-time highs and valuations looking stretched, questions of when the eight-year-long bull market will come to an end are inevitable.

Indeed, the oft-cited cyclically adjusted price/earnings (CAPE) ratio chart for the S&P 500 shows the index is trading at just over 30 times, almost double its long-term average.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Bank of America Corp24.14 USD1.77

About Author

David Brenchley

David Brenchley  is a Reporter for Morningstar.co.uk

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