The S&P 500 rests just about the 2,800 resistance level. Unfortunately, it’s just barely above and not enough to say that it has broke through. The P/E ratio ended the week at 21.7. The bond market yield curve has steepened over the past month as short-term rates have decreased. The S&P 500 looks to be trading near the high side of what I considered fair value. I think we need a trade deal in order for the market to move much higher and then we will need earnings growth to keep valuations attractive.

Economic fundamentals in the USA look pretty good. The European economy is struggling just as it has for the past ten years and the Asian (lead by China) economy is weakening further. Two of the three need a trade deal to help economic fundamentals improve. Hopefully, a trade resolution is announced soon. Until then, my opinion for investors wanting to put money into the stock market is to be selective rather than investing in the broad market or an equity fund. There are always good companies trading at undervalued prices. The trick is to find them.