Yes…the stock market has been trending upwards…however that has waned…
The realities are as follows…
Company valuations are sky-high.
At 26.44, the S&P 500’s Price/Earnings ratio is the highest EVER, except for 2008 crash and the 2000 crash. You decide if it is a good time to invest????
At 28.93, the “Shiller P/E ratio”, which looks at company valuations over a longer-term, 10-year period and adjusts for inflation, is at the highest level EVER, except for two occasions again… 2000 crash and do not want to say the 1929 crash. Wow!!!!
Price to sales ratios are near the highest levels in at least 50 years.
Price to book ratios haven’t been at this level since the 2008 crash.
And the stock market cap to GDP ratio is the highest since the 2000 crash.
Bloomberg came out with Paul Tudor Jones described these expensive stock market valuations as “terrifying” earlier this month at a closed-door asset management conference hosted by Goldman Sachs. Immediately there were pundits…however facts are facts…
According to Yale University’s Stock Market Confidence Index, for example, over 90% of individual investors believe that the stock market will rise in the next 12 months.
How much longer can the insanity continue? All asset classes are at bubble levels…
You tell me…
