Stock market bulls and bears agree on at least one thing. The highest valuations for makers of household goods since 2008 signal the best is over after the industry rose more than any other group this year.
Keith Hembre dumped bonds and bought stocks when the Federal Reserve announced its plan Nov. 3 to buy $600 billion of Treasuries. The rationale: to benefit from anticipated market gains on days of Fed purchases.
U.S. stocks fell, pulling the Standard & Poor’s 500 Index down from a two-month high, as deteriorating federal budget negotiations fueled concern that automatic tax increases and spending cuts will be triggered.
U.S. stocks rose, erasing last week’s drop, as $21.5 billion in takeovers and valuations near the cheapest level in two years helped the Standard & Poor’s 500 Index extend its best three-day rally since 2009.