Today’s Stock Market Is Not Yet At Dot-Com Bubble Levels
Stock-Markets / Stock Market 2017 Jun 19, 2017 - 04:01 PM GMTPATRICK WATSON : Worried about a stock market crash?
Valuations are high, yes, but not at the levels seen in the late 1990s dot-com craze.
A Leuthold Group study used the same measures to compare today’s valuations against those in the 1990s.
Source: Leuthold Group via Bloomberg
Based on things like earnings, dividends, and cash flow, the S&P 500 now sits where it was in late 1997.
From there, the bull market ran another 2.5 years and added 60%.
History rarely repeats itself so neatly, but it’s true that bubbles grow bigger and last longer than most anyone expects. It’s when the bears give up that we ought to worry. We’re not quite there yet.
Subscribe to Connecting the Dots—and Get a Glimpse of the Future
We live in an era of rapid change… and only those who see and understand the shifting market, economic, and political trends can make wise investment decisions. Macroeconomic forecaster Patrick Watson spots the trends and spells what they mean every week in the free e-letter, Connecting the Dots. Subscribe now for his seasoned insight into the surprising forces driving global markets.
John Mauldin Archive |
© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.