Despite the latest run, Mark Hulbert at MarketWatch noted that the US stock market appears to have become slightly less overvalued since September 2018.
Hulbert said that while the price/earnings ratio for the market is slightly higher than in September 2018, “the majority of the other valuation indicators I monitor are slightly lower today”.
Still, Hulbert said that US stocks “remain more overvalued today than at almost every other bull market top of the past century”.
Even long-time bull and Edward Yardeni, president of Yardeni Research, seems to think that the market is getting too expensive.
In an interview with CNBC, Yardeni said that the S&P 500 forward earnings multiple is now 17. The historic norm is 15 to 16.
If the multiple reaches 19 or 20, Yardeni said that the market could experience a “nasty correction”.
Still, Yardeni remains bullish for the longer term and has a target of 3,500 for 2020.
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