6 reasons why stocks are still overvalued — even after this recent correction

Discussion in 'Wall St. News' started by Altavest_Erik, Jan 15, 2019.

  1. SteveM

    SteveM

    One point the author failed to consider:

    You’ve got 25% of global GDP coming from nations still sitting at 0% nominal rates - ECB, BoJ, SNB, etc.

    You’ve got 75% of global GDP coming from nations basically still sitting at 0% real rates - Fed, ECB, BoJ, SNB, Canada, Australia, etc.

    You’ve got an S&P 500 trading at around 15x forward earnings which is about a 6.5% earnings yield.

    The point? Assuming we aren’t about to get hit with a massive recession, stocks are still more compelling than treasuries at these levels.
     
    tortoise likes this.