In today’s environment bulls and bears can argue until the second coming of Jesus about whether or not today’s stock market is overpriced. Taking all sort of shortcuts and coming to questionable conclusions in the process.
The chart above is rather self explanatory. Today it takes 115 hours of wages to buy 1 share of the S&P 500. No fudging numbers, no complex formulas and no human error. The highest level in recorded history. Higher than 1929, 2007 and even 2000.
And while the bulls would argue today’s low interest rates justify the above valuations, nothing could be further from the truth. But who am I to tell you not to pay extravagant prices for today’s below average debt inflated earnings.
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