- The S&P 500's 22% YTD return has been driven almost entirely by multiple expansion rather than higher earnings, says Goldman's David Kostin. That and the fact that the Cyclically Adjusted PE (CAPE) Ratio made famous by now-Nobel-laureate Robert Shiller suggests the index is about 30% overvalued isn't enough to have Kostin forecasting a bear market.
- Instead, the music's playing so we dance - he sees a flat S&P through year-end, but has a target of 1,900, or 9% above today's level in 2014.
- Kostin's excellent charts: Markets and money flow, Mutual fund flows, Market performance YTD.
- S&P 500 ETFs: IVV, SPY, VOO, RWL, SFLA, SSO, UPRO, SDS, SPXU, SH, EPS, RSP, BXUB, BXUC, BXDB, IVW, RPG, SPYG, VOOG, SPYV, IVE, RPV, VOOV, FTA,
Pricey market can get pricier
Oct 21 2013, 15:23 ET