S&P 500 Cheap? Sounds Good To Those Who Missed The Bus

The past few days have not been kind to the S&P 500 and emerging market indexes. Emerging markets have tripped up again and their political and currency woes are said to have triggered a global sell-off. Mid-January, a Goldman Sachs analyst dampened bullish enthusiasm somewhat with a report to clients that said “S&P 500 (.INX) valuation is lofty by almost any measure. We believe S&P 500 (INDEXSP:.INX) trades close to fair value and the forward path will depend on profit growth rather than [price-to-earnings] expansion.” Nouriel Roubini, aka Dr. Doom, gave a boost to the bearish camp by tweeting that a…