Steven Wagner Discusses the Stock Market’s Rebound with The Wall Street Journal

On Tuesday, August 18, the S&P 500 closed at an all-time high, erasing February and March’s coronavirus-fueled plunge that ended the longest-running bull market in history. Adding to the exciting market news is the fact that the index was able to achieve this massive rebound in a mere 126 trading days, its fastest-ever recovery from a bear market.

For insights on how investors are reacting to the stock market’s record-breaking rebound, The Wall Street Journal turned to Steven Wagner, co-founder and chief executive officer of Omnia Family Wealth.

“There’s a feeling of euphoria in the marketplace that you’re going to make money,” Wagner says in regard to his recent interactions with clients. “But they’re also bewildered by the disconnect with the economy and what they see in their businesses, their lives and what stock prices are doing.”

However, it is important to note that the S&P 500’s rapid turnaround has also caused it to become dangerously exposed to another potential beating as the index is currently trading at 22.6 times the projected earnings over the next 12 months.

“Valuations are extremely high,” Wagner tells the publication. “We don’t believe it’s realistic to expect this economy to be at levels it was at in February.” To help counteract these high valuations, he explains that Omnia Family Wealth has been hedging their clients’ stock portfolios with foreign equities, gold and, in some cases, bonds.

To read the entire article in The Wall Street Journal, click here.