Stocks rise as US market looks "more expensive than ever"

Stocks rose on Friday.

The S&P 500 rose 0.4 percent, the STOXX Europe 600 rose 0.2 percent and the Nikkei 225 rose 0.4 percent.

Bank of America Merrill Lynch’s chief investment strategist Michael Hartnett wrote in a note on Friday that redemptions from equity and high-yield funds over the past four weeks have pushed markets close to a “contrarian ‘buy’ signal” and threatening “bear capitulation” upside for risk markets.

On the other hand, it is hard to see how much upside there can be for markets when US stocks are already more expensive than ever based on price-to-sales ratios.