IT Sector Sitting At An Intriguing Valuation Level: Citi

Citi analysts Tobias M Levkovich, Lorraine M Schmitt and Christina Wood take a look at the valuation conundrum facing investors in their “Monday Morning Musings – The Valuation Equation” piece dated October 18, 2013. Investor concerns The S&P 500 (INDEXSP:.INX) has already risen ~20% this year, and earnings are up from 5-6%. Is there anything left on the plate, especially considering a likely Fed tapering next year and a rise in bond yields? Higher bond yields are already being factored in as apparent from the 10-year futures UST chart below, currently ruling at around 5%. Comfort factors Citi’s intelligence at the…