S&P 500

S&P 500 at Highest Valuation Since Tech Bubble: Goldman

As we continue through 2015, events continue to pop up that provide investors with anxiety and question the rally’s strength.  Most notably, strong US dollar/weak oil and the effects it is having on US corporate earnings.  Additionally, continued speculation of a Federal Reserve interest rate hike, China bubble worries, Russian aggression, Greek default possibilities, etc continue to put pressure on the bullish thesis of the market.  Now bulls have another issue to worry about: valuation.  First looking at the Shiller PE Ratio, the current value is 27.07, just above levels during the Great Recession and hitting levels not seen since Tech Bubble.  Additionally, the S&P 500 currently has a price to forward earnings ratio of 17.5, the highest value in 40 years, outside the Tech Bubble. Currently, the S&P 500 is up nearly 2% year to date.


Goldman Sachs recommends looking for short opportunities

SORRY!

This content is exclusively for paying members. Sign up here

If you are subscribed and having an account error please clear cache and cookies if that does not work email support@valuewalk.com or click chat


X
Saved Articles
X
TextTExtLInkTextTExtLInk

The Life and Career of Charlie Munger

Charlie is more than just Warren Buffett’s friend and Berkshire Hathaway’s Vice Chairman – Buffett has actually credited him with redefining how he looks at investing. Now you can learn from Charlie firsthand via this incredible ebook and over a dozen other famous investor studies by signing up below:

  • Learn from the best and forever change your investing perspective
  • One incredible tidbit of knowledge after another in the page-turning masterpiece of a book
  • Discover the secrets to Charlie’s success and how to apply it to your investing
Never Miss A Story!
Subscribe to ValueWalk Newsletter. We respect your privacy.

Are you an intelligent investor?

ValueWalkPremium is a website and newsletter for smart investors like yourself. We focus on the latest hedge fund industry news much of which is not in the public domain and obtained via our sources.

We also have 10 years of resources on how to use this information to better your investment process.

Sign up for  today for only a few dollars a day and get a 3 day no obligation trial with a targeted 20% discount coupon code.

Cancel anytime during trial and you are never charged.

Limited time offer: For first 50 subscribers

0