These funds' cash stakes have been on the rise

As stock prices rise, valuations become less compelling, leading some portfolio managers to wait it out by holding more cash.

Jeffrey Bunce, CFA 2 May, 2017 | 5:00PM
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Jeff Bunce: Stock prices have rallied in the past few years and are broadly outpacing the growth in underlying earnings. This means stocks are getting relatively expensive compared to recent history, particularly in the United States where on the basis of trailing 12-month price-to-earnings ratios, valuations haven't been this high since the early 2000s. Valuations in Canada and in international markets have been rising over the past few years, too.

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About Author

Jeffrey Bunce, CFA

Jeffrey Bunce, CFA  Jeffrey Bunce, CFA, is a senior investment analyst for Morningstar’s Investment Management group.

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