By Kris Sayce – Port Phillip Insider (Australia) – The S&P 500 PE ratio is well above the 19-times earnings level it hit in 2008. So if the current level doesn’t shout ‘risk’, we don’t know what does.
The market is already expensive, past the level it was at the previous peak in 2007 and 2008. Yet investors are now supposed to believe that a new bull market is about to begin.
As we’ve noted before, we just don’t buy it.
And despite what the commentators and analysts may say, underneath, the market doesn’t necessarily believe a bull market is about to begin either.