The Tell: History suggests the stock market isn’t overly expensive right now

Bulls frustrated by the stock market’s refusal to rally despite a strong earnings season should remain patient, according to analysts at LPL Financial.

They argue that slightly-above average valuations are justified by still-low interest rates and relatively low inflation and that if earnings growth for the rest of the year remains meets forecasts stocks could be in for a double-digit percentage rise from here.

Read:Why the stock market is unimpressed by the best first-quarter results in 24 years

“When we combine reasonable valuations with solid fundamentals and a positive technical and sentiment backdrop, stocks look like a potential opportunity to us,” wrote LPL Financial strategists John Lynch and Jeffrey Buchbinder, in a note to investors.

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