Question for U.S. Stock Bulls Is When Valuations Start to Matter
- Citigroup strategist called stocks `screamingly attractive'
- Wednesday's 3.9% rally started from lowest P/E since 2014
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Four months ago, Janet Yellen pronounced U.S. equity-market valuations “quite high.” Now Citigroup Inc. and Stifel Nicolaus & Co. say they could have the power to stanch the bleeding in American equities.
They were “screamingly attractive” to Tobias Levkovich, Citigroup’s chief U.S. equity strategist, when he spoke on Bloomberg Radio just before the Standard & Poor’s 500 Index staged its biggest rally in four years. Chad Morganlander, a money manager at Stifel Nicolaus in Florham Park, New Jersey, said that they had fallen almost enough for investors to feel safe buying.