3 ms·
Yeah, stock valuations seem pretty high, eg: https://www.multpl.com/shiller-pe https://www.multpl.com/shiller-pe , https://www.currentmarketvaluation.com/models
by verteu 5mo ago
Yeah, stock valuations seem pretty high, eg: https://www.multpl.com/shiller-pe https://www.multpl.com/shiller-pe , https://www.currentmarketvaluation.com/models/buffett-indicator.php https://www.currentmarketvaluation.com/models/buffett-indica... , https://www.multpl.com/s-p-500-earnings-yield https://www.multpl.com/s-p-500-earnings-yield
- redwood 5mo agoThanks the second chart is more concerning than the first. The first has a variety of potential distortions at play first of all portion of industrial activity that's done by public vs private companies shifts over time and second of all a lot of these companies do 40 to 50% of their business overseas. Whereas a historically low ratio of earnings to index value is a deeper concern to me
- deleted 5mo ago[deleted]
- brewdad 5mo agoI’ve never looked at the numbers to see exactly how large of a pool it is but millions of Americans are effectively forced to buy into the market to fund our 401ks and future retirements. That’s billions of dollars of inflow every month that has to go somewhere, usually index funds.
- bdangubic 5mo agoit is exactly this. I am self-employed and have been managing my solo 401k for 15+ years now. while I am fully aware of market being overvalued I will still max out my 401k this year ($80k, I am over 50 :) ) and that money needs to go somewhere. I could theoretically sell and sit on the cash and wait on "crash" but I could have technically done that a year ago (this were similarly not very rosy) or even earlier and that obviously would have been a terrible financial decision. no one can time the market and therein lies the core issue, money will always be flowing in...