4 ms·

The market was posting all time highs until a few months before the DotCom bust?

• airstrike 8y ago
  More relevant, but that isn't enough. The market was also posting all time highs in 2012, 2013, 2014... If you want a simple proxy, looking at the S&P 500 P/E ratio is a slightly better metric[0]. It's still not the same as explaining the mechanism through which the next recession will occur, but then again if you could explain it a priori, you'd be a billionaire. __________ [0] https://www.multpl.com/s-p-500-pe-ratio https://www.multpl.com/s-p-500-pe-ratio
  • empath75 8y ago
    I’m not making the argument that posting all time highs means a crash is coming, I was simply pointing out that it doesn’t mean that it’s not.
  • akeck 8y ago
    Right. I see what you mean. Actually, I mostly only pay attention to the Shiller P/E - which is a bit high at the moment.