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Home>UPDATE: A rising share of Wall Street CFOs think this stock market is 'bubblicious'

UPDATE: A rising share of Wall Street CFOs think this stock market is 'bubblicious'

UPDATE: A rising share of Wall Street CFOs think this stock market is 'bubblicious'

09/25/2017

By Mark DeCambre, MarketWatch

Dow industrials have recorded 42 record highs in 2017

Wall Street stocks have been mostly on a record-setting uptrend and that has raised concerns from C-suite executives tasked with managing a corporation's money, according to a quarterly survey conducted by Deloitte.

More than 80% of chief financial officers surveyed by accounting firm Deloitte said U.S. stock markets are overvalued, marking the highest level since Deloitte began conducting its quarterly poll about eight years ago.

The findings underline an increasing sense of dread by market participants that stock valuations have become bloated after the S&P 500 index , the Dow Jones Industrial Average and the Nasdaq Composite Index have registered repeated records and remain less than a percentage point (http://www.marketwatch.com/story/us-stock-futures-fall-after-north-korean-nuclear-bomb-threat-2017-09-22) from fresh records in recent trade.

The Dow has rung up 42 all-time highs in 2017, the S&P 500 index has booked 37 records, while the Nasdaq has ended at a record 49 times, so far this year.

Fretting about stock-market valuations isn't new. According to a July study by StarCapital Research, the U.S. has the least affordable equity market in the world (http://www.marketwatch.com/story/the-us-stock-market-is-the-worlds-most-expensive-2017-07-18).

A mounting chorus of industry participants worrying about inflated equity values doesn't mean that stocks will experience a pronounced downdraft soon, but it does raise the question about the level of returns investors can expect to see as the market creeps higher, and as volatility, as measured by the CBOE Volatility Index , or VIX, remains at a subdued level of 10. That represents around its lowest levels in history and way below its historic average around 20.

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