Are Stocks Too Expensive ?


Bloomberg’s chart of the day looks at the S&P500 valuation, based on a price/earnings ratio compiled by Yale University Professor Robert Shiller, one year after after the end of each post-World War II recession.

According to the data, the S&P500 ended July at 20.2 times ten year trailing profits (aka Shiller’s cyclically adjusted P/E ratio). The average for the economy’s previous nine rebounds was of 16.1 P/E.


Sources: Hussman, Bloomberg, Shiller/Yale

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