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It's not just that it's at all time highs. PE ratios are also at all time highs: that's the Price to earnings ratio. There's a number of indicators right now
by thorwasdfasdf 7y ago
It's not just that it's at all time highs. PE ratios are also at all time highs: that's the Price to earnings ratio. There's a number of indicators right now that are at all time highs like the Warren buffet ratio (GDP/earnings), all pointing saying this market is really expensive.
This is the most hated bull market ever. None of the experts are buying heavily into this market (it's all stock buybacks that's driving this market up).
So, you can see why everyone is uneasy about these extremely high PE ratios.
- rootusrootus 7y agoSince you mention Warren Buffet, I will say that what makes me most nervous about the market is that collectively everyone seems to be concluding that it's overheated. By the time the hordes figure it out, it's already happened.
- lotsofpulp 7y agoHave the hordes figured it out?
- Clubber 7y agoThis recession talk seems to be happening suspiciously close to an election year. It's almost as if someone is trying to concoct a self-fulling prophecy.
- tehlike 7y agoThis was the case last year too... In 2017 and 18, there was discussions of melt up and then melt down...
- mrep 7y ago> PE ratios are also at all time highs: that's the Price to earnings ratio What index are you looking at? SP 500 is at about 23 [0] which while higher than median, is definitely not at all time highs. [0]: https://www.multpl.com/s-p-500-pe-ratio/table/by-month https://www.multpl.com/s-p-500-pe-ratio/table/by-month
- mypalmike 7y agoWhich PE ratios are at all time highs? Nasdaq aggregate PE is elevated above median but not at an all time high.