Welcome to the DC Today, your daily market synopsis of the Dividing Cafe, brought to you every Monday through Thursday to bring you up-to-date information and perspective on financial markets.

Hello and welcome to DC Today this Tuesday, March the 26th. It's great to be with you. We had mostly a fairly sideways day in

markets. The market was positive for most of the day. We ended up closing slightly negative.

We were down about 30 points, a little more on the Dow. Interest rates were down two basis points

on tens to 423.

So a fairly quiet day in markets.

And I have some comments in there on some historical data.

And then I think David does as well in his section.

So let me tie those two pieces together.

So this is the 10th time since 1950 that we've had five months in a row of positive of positive markets.

And what I did is just looked at in history when that did happen.

Again, I mean, 10 times is quite a few, really, even though it's over 70 years, were

markets positive or negative a year later than that? And this does not mean that it'll be

the case this time, but in every case, they were positive. And so there's something to be said about

some momentum, and that's what we're seeing now. That said, there's a real valuation issue that we're

talking about. And David alluded to this very nicely in his piece, which is,

if you assume an 11% growth rate for this year and then what is estimated now for next year,

at 13%, you're still trading at 21.4 times now and 19 times for next year's. And that's including

or assuming that markets will stay the same you

know meaning they won't go any higher so look historically the numbers aren't necessarily against us

as far as market returns we're you know considering where we are but just keep in mind the

valuations are are pretty stretched here at this point.

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