Skip to content

The Leuthold Group's latest Major Trend Index holds at Neutral for a third straight week, even as markets snapped a multi-week winning streak. The story underneath is earnings. While valuation multiples sit near record highs, accelerating EPS growth has done much of the work to keep those multiples in check to the point that the index's P/E on forward operating earnings has actually compressed year-to-date. After a 2025 defined by earnings catching up to price, 2026 is testing whether "E" can carry the market from here.

Click here to read more of the "Major Trend Index" article. 

Explore Articles Content

Why Credit Selectivity Matters: Identifying Value in a Changing Credit Environment

Key Takeaways Tight credit spreads and resilient fundamentals call for selective...

Read More
Major Trend Index 5/27/2026

The Major Trend Index remains Neutral, with tactical equity exposure ticking up ...

Read More
Is Your Core Equity an Ungoverned Active Bet?

Author: Richard Yasenchak, CFA, CFP®, Senior Managing Director, Head of Client P...

Read More
Mid-Quarter Update

The stock market rebounded in April. Much of the recovery can be attributed to a...

Read More
Back to Learning Center

This content is for informational purposes only and is not intended to be investment advice or a recommendation to take any particular investment action. This content is also not intended to reflect a current or past recommendation, investment advice of any kind, or a solicitation of an offer to buy or sell any security or investment services in any jurisdiction. This content does not contain sufficient information to support an investment decision. Potential investors should consider their own circumstances and assess the legal, regulatory and tax implications before making an investment decision. All investments are subject to risk, including the possible loss of principal. Past performance does not guarantee future results.