(Invesco) Investment giant Invesco says S&P 500 returns in the next ten years will be limited, pointing to the Shiller PE ratio reading above 38, which suggests that the market has become so expensive.
Invesco says besides the expensive markets, the US Federal Reserve is sounding more hawkish, with three rate hikes expected this year adding pressure to S&P 500.
The investment giant says with the shrinking of the balance sheet, and short-term volatilities are bound to happen.
S&P 500 has returned 26.4%, 18.4%, and 28.3% in the last three years, and there are only nine occasions when the index has returned more than 15% for three straight years. Invesco says although this may give hope for 2022, the underlying factors, including the Shiller PE, are against the stock index.
S&P 500 is up +0.082%.
