This is the second entry in our new blog that we will be writing every Wednesday to keep our clients and friends updated on a few important things going on in the markets and economy. 

Crestmont Market Valuation UpdateEach month we like to review the charts and trends prepared by Ed Easterling at Crestmont Research.  Easterling wrote the book entitled Unexpected Returns, Understanding Secular Stock Market Cycles  Easterling tracks these cycles each month.  Crestmont currently calculates the price earnings ratio to be 20.4 compared to an average since 1871 of about 13.7%.

Investment Outlook by Bill Gross –Bill Gross, founder of PIMCO, writes an interesting article every month about his outlook for the future.  Gross believes that the current policies of central banks around the world will lead to higher inflation.

We would appreciate your feedback on this blog.  Feel free to forward it to your friends and family. 

John R. Day and Bill W. Ennis