Investors are ignoring two major risks to stocks, warns fund manager

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Investors are ignoring two major risks to stocks, warns fund manager
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The market “doesn’t have to fall just because it has been trending up for over a decade,' says this fund manager

Is the stock market really going to melt down if the elusive phase one China-U.S. trade deal goes kaput?

The market “doesn’t have to fall just because it has been trending up for over a decade, but the valuation and expected return from this starting point are pretty simple,” he says. So in 1924, the dividend yield was 5% and the P/E was 10, which allowed for a lot of expansion, and earnings growth was higher than we’ve seen recently, he says.

— Mike Shell 🛡⚔️🇺🇸 November 16, 2019 The market Dow YM00, +0.01%, S&P ES00, +0.01% and Nasdaq NQ00, -0.03% futures were slightly higher. European stocks SXXP, -0.33% are softer and Asian markets ADOW, -0.84% closed in the red. The buzz TD Ameritrade AMTD, +1.82% and other brokerage shares rose after a report Charles Schwab SCHW, +0.79% may buy its rival broker. Schwab shares are down.

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