Since the Federal Reserve ended their QE policy back in October, stocks have flattened out and bond yields have risen. Valuations in the stock market are high. Maybe not as elevated as the highest valuations in 2000, but none the less they are very expensive, particularly some sectors like healthcare and consumer stocks. Bond yields are reflective of The Great Depression when there was severe deflation. Earnings growth has slowed down to a flat to down trend due to the currency translation issue, a crash in the energy sector, and we are in the latter years of an economic cycle. China and Greece have been headline news lately as China’s stock market has entered a bear market and Greece has defaulted on their debt.

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PVG – Equity Income Monthly Update (July 2015)