Recently, the S&P 500 is trading at a level not seen since early 1998, when the S&P 500 broke 1,000 for the first time. The market’s current normalized price to earnings ratio stands at around 29.1, the last time such a valuation was seen was in 1998, and the market went on to rally by 50%. There are only two periods in history when the Equity Market has been as expensive as it is today using a normalized price to earnings ratio. Barring the dot-com bubble, the first occurrence of this anomaly was in 1929 when the market charged to…
The Equity Market May Be Expensive But We Don't Know When The S&P 500 Will Selloff
Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for ValueWalk