Markets were mixed on Thursday.
The S&P 500 and the STOXX Europe 600 slipped 0.1 percent but the Nikkei 225 rose 0.2 percent.
Diane Jaffee, senior portfolio manager at TCW, said that “people are getting jittery about valuations”.
Indeed, CNN reported that the S&P 500 is trading at 2.1 times its trailing revenue. The last time it was higher was in September 2000 when it was at 2.2 as the dot-com bubble was popping.
Peter Boockvar, chief market analyst at The Lindsey Group, said that while valuations are “terrible short term market signals”, they “matter very much” in the long run.
However, Dan Heckman, senior investment strategist at US Bank Wealth Management, said the price-to-sales ratio is a “lagging indicator”, adding that while the market is not cheap, it is “not overly expensive either”.
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