As you may have heard, the S&P 500 rose to a new all time high, above the symbolic 2000 milestone.- Some of the gains are motivated by higher profits, but valuations have risen too. The current Schiller P/E is 26.3, more or less matching the highs seen during the 1929 and 2007 peaks. Only in 1999-2000, during the tech bubble, has it been higher. The ratio is nearly 60% higher than the historical average.
U.S. Stockmarket As Expensive As During 2007 Peak
As you may have heard, the S&P 500 rose to a new all time high, above the symbolic 2000 milestone.- Some of the gains are motivated by higher profits, but valuations have risen too. The current Schiller P/E is 26.3, more or less matching the highs seen during the 1929 and 2007 peaks. Only in 1999-2000, during the tech bubble, has it been higher. The ratio is nearly 60% higher than the historical average.
Stefan Karlsson's blogg 