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"In the US, for starters, there's a huge bubble in stocks" The median PE ratio of S&P 500 stocks at the moment is $14. That's certainly not "bubble" territory.
by code4tee 11y ago
"In the US, for starters, there's a huge bubble in stocks"
The median PE ratio of S&P 500 stocks at the moment is $14. That's certainly not "bubble" territory. The current market correction is surprising nobody, but I don't think many people consider this a bubble (at least for the US markets).
Now there are certainly subsectors within the US that could be in bubble territory and could get hit really hard... unrealistically valued tech stocks being one of them. But again, across the whole US economy things are alright.
- jazzyk 11y agoI assume you meant 14, not $14. Anyway, it is false. S&P 500 P/E ratio was (until last week) around 19. The more accurate Shiller P/E was closer to 27. Way above the historical median. http://www.bloomberg.com/news/articles/2015-06-26/the-s-p-500-p-e-is-19-unless-it-s-actually-27-as-shiller-says http://www.bloomberg.com/news/articles/2015-06-26/the-s-p-50...
- forgetsusername 11y agoThe Shiller CAPE is 24.41, the historical average is 16.62: http://www.multpl.com/shiller-pe/table http://www.multpl.com/shiller-pe/table