THE FINANCIAL COMMUTE

Why Valuations Matter When Investing in Stocks

Chris Galeski Season 1 Episode 93

On this week’s episode of THE FINANCIAL COMMUTE, host Chris Galeski welcomes Jeff Sarti, CEO of Morton Wealth to discuss market conditions and valuations.

Here are some key takeaways from their conversation:

- Jeff highlights the importance of setting realistic expectations for stock returns, noting that the past decade’s 10-12% returns may not continue.
- Jeff discusses the benefits of investing in various asset classes beyond stocks and bonds, such as real estate and private lending. Diversification can help manage risk and volatility. 
- Valuations matter when predicting future long-term returns. Historically, higher starting valuations have been associated with lower future returns. 
- Jeff is cautiously optimistic about the market and advises careful consideration of valuations to manage risks effectively.