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I was reading some investors posts (not on citydata) and they were saying valuations are higher now than they were the peak of the dot-com bubble.
I didn't think that was the case? I thought more so 'high side of fair' in general.
Valuations is an area I am not good at deducing I have found! Except I "knew" prices were good March 2020 as stocks were same price as they were in 2016 (Starbucks for instance which I picked up amongst many others).
Here's an article from April 2021 saying the same (and of course market is up since then):
Not quite that simple…markets don’t mind rising rates when increases are slow .
Rising rates means the economy is humming along which is good .
Rates have to get way high . What we typically see is a little speed bump initially and then back up we go when the economy is good and that is why rates are rising .
Legendary stock market scholar Jeremy Siegel told Bank Of America clients on Thursday that U.S stocks “as a whole” were not overvalued and that some American stocks could even be priced too low.
According to the emeritus professor at the Wharton School at the University of Pennsylvania, U.S. stocks are selling at 22 times projected 2022 earnings. That’s not completely out of line given the current level of interest rates. But Siegel's view defies mainstream thinking that equities after richly priced after climbing more than 100% from its pandemic lows on March 24, 2020.
Moreover, Siegel noted that if one removes the mega-cap tech stocks, or FANG names plus Microsoft, from U.S. indexes, the S&P 500's price ratio to 2022’s expected earnings falls to 19. That’s a level more than a few investors might consider too cheap.
some stocks are overvalued, some are not. Indexes as a whole, are a little rich, but we are not in bubble territory yet.
No, we are going to have a stock market crash this year (unless something dramtically, and fundamentally changes.)
We are at the tail end of a stock market super cycle, but we have probably another 18 months left in this bull run, at least, before it ends. possibly as much as 36 months.
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