A quick overview of trading valuations for the market and industry sectors reveals a general level of overvaluations. The S&P 500 is currently trading at 16.4 times this year's operating earnings estimates (slightly above its historical average). It is also 5% overvalued based on the Morningstar proprietary discounted cash flow model.  Financial, Utilities and Energy are the only 3 of the 10 S&P macrosectors trading at a discount to the overall market.  Energy is also undervalued based on the Morningstar model; Basic Materials is the only other macro sector below fair value based on the Morningstar model.

Please feel free to contact our team should you want to discuss further these statistics.