With the S&P 500 making fresh record highs, 68 individual stocks are in a 52 week high. Does this mean the stock market rally is on firmer footing? Gina Sanchez, CEO of Chantico Global, and Ari Wald of Oppenheimer discuss with Eric Chemi. Gina says if we looking for a continued bull market, that there are a few things to look for (continued below)

1- Continued multiple expansion

2- Continued leadership by growth and growthier names

As she sees it, we are not seeing these and

3- We must see continued upward revisions

and in fact, you are seeing, says Gina, continued downward revisions.  In fact, she says, revisions peaked out around April and optimism around earnings going forward in the next year are starting to wane. Multiples are also starting to retract and Gina says that a shift in leadership from growth stock to value stock for the first time this year is, “the canary in the coal mine.”

Gina feels that the shift in the leadership maybe because the investors may be more focused on the valuation more than ever before. She continues by saying, the current valuation of the stock market continues to be its’ achilles heel. Recovery is in play, it is global and it is showing to be substantial.

Before Gina wraps up this segment, Gina leaves us with both good information and a question that begs for an answer.  Gina starts off telling us that we are looking at a market that prices in all that she discussed above, plus a lot more, and that’s going to be the continued concern to the extent which this bull market can expand, because if we are talking about a multi-year bull market and you’ve already priced in all of that growth in the first year, where can you go?