Valuations of US equities likely to fall back

We don’t expect the valuations of US equities to continue to rise over the rest of 2019. In fact, we expect the price/earnings (P/E) ratio of the S&P 500 to fall, and this is a key reason why we forecast that the index will drop by about 15% from its level now by the end of the year.
John Higgins Chief Markets Economist
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