U.S. Stock-Market Valuations Are At Dangerous Bull-Slaying Levels
- The US stock markets are dangerously overvalued today. Measured by the elite S&P 500 component stocks, trailing price-to-earnings ratios are well above the 21x historically expensive level.
- Today's valuations of 23x to 26x are way up in extremely risky bull-slaying territory that has killed past bull markets.
- Stock prices would need to fall by well over a third simply to return to historical fair value of 14x earnings.