As we are in the middle of the summer, things are starting to heat up here in the office. Recently my duty has been to justify why or why not equities are overvalued today. Many analysts will have different views depending on the starting point of the data; as one can prove anything they want by controlling the starting date. However, my finding with the beginning period of 1965 to today, comparing and contrasting the price and earnings of the S&P 500 was that we are still recovering from 2008 and equities are not overvalued. However, the only variable that would contradict this result is that if the S&P 500 was in a downturn in 1965, which does not seem to be the case. We do see prices increasing in equities; however something needs to be done by the Fed to adjust the interest rates as we have too much money circulating in the economy.
On another note, I was fortunate enough to connect with a former MBA student of Babson through my office. It was a pleasure to meet Scott Samuelson, husband of Joan Benoit Samuelson, the winner of the first ever Women’s Olympic Marathon. He thinks entrepreneurially. It was a great to meet Mr. Samuelson and listen to his story. I am thankful for his willingness to advise and help me network through the finance industry.