Morningstar Finds 5 of 7 Key Assets Above Average as Gold Drops Nearly 25% From $5,400 Peak
Updated
Updated · Morningstar · Aug 4
Morningstar Finds 5 of 7 Key Assets Above Average as Gold Drops Nearly 25% From $5,400 Peak
1 articles · Updated · Morningstar · Aug 4
Summary
Five of seven assets in Morningstar’s latest Market Thermometer still sit above their 20-year averages, though the overall picture is less stretched than six months ago.
Gold at about $4,026 an ounce by June 30 remains elevated despite falling nearly 25% from its January peak above $5,400, while Morningstar says mean-reversion risk still argues for caution.
U.S. valuations also remain rich: the Morningstar US Market Index P/E stayed near the high end of its 20-year range, and real housing prices are close to prior peaks.
Cash and bonds look more attractive than in the zero-rate era, with the fed-funds midpoint at 3.64% and 3-month Treasury bills at 3.86%, slightly above 3.5% inflation.
Only Brent crude and bitcoin screen below or relatively low versus history, while a still-high dollar index of 120.92 points to the case for international diversification.