We’re over 15 months into this bear market. The S&P 500’s peak close was on January 3rd of last year at $4,796 while it’s recent close is $4,124 for a price decline of about 14% so far (although was down much more than that last year).
So, the question is, are U.S. stocks cheap, or even fairly-valued, yet? Well, let’s see… Continue reading “Are Stocks Cheap Yet (Or Even Fairly-Valued)?”
A reminder that valuations are NOT short-term timing tools. The purpose of monitoring and understanding stock market valuation data is so we can build more accurate financial projections using more realistic assumptions (and therefore make better financial decisions) and to assist with longer-term investment strategy (i.e. 10-12 year time horizons).
In short, folks who are chasing performance higher at current levels by adding more stocks to their portfolios and/or buying low-quality, money-losing companies at extreme prices are either (1) ignorant to market history, or (2) understand the history but are rationalizing today’s dislocations with “this time is different” or, (3) they simply believe they are smart enough to get out in time.
Let’s take a look at the big picture of U.S. stock market valuations that are more excessive than they’ve ever been in history exceeding even the pre-Great Depression peak at the end of the Roaring Twenties and the Dot-Com Bubble Peak.
Continue reading “U.S. Stock Valuation Update”