Steve Blumenthal: High Valuations = Low Forward Returns

High Valuations = Low Forward Returns by Steve Blumenthal, CMG Capital Management “I can’t change the direction of the wind, but I can adjust my sails to always reach my destination.” – Jimmy Dean Over the course of the first quarter, Standard and Poor’s lowered their forecast for 2015 earnings from $135 per share to $112 per share to $110 per share.  With prices already high relative to corporate earnings, such a trend is not an investor’s friend. Let’s take a look today at current valuations and see what they may tell us about the market’s return over the next…