Posted by sbaxman111 on 18th of Oct 2017 at 04:06 pm
Today, we present a different response, this time from Bank of
America, which has just completed the periodic update of its
valuation matrix based on the 20 most widely used valuation
metrics, and which finds that as of today,
the S&P is substantially overvalued on 18 of 20 valuation
metrics
, with the only exceptions being free cash flow (helped again by
depressed capex), and relative to small caps/bonds - the Fed's
favorite indicator - where yields remain depressed thanks to
the Fed's failure to stimulate wage inflation for nearly 9
years.
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S&P 500 Valuations
Posted by sbaxman111 on 18th of Oct 2017 at 04:06 pm
Today, we present a different response, this time from Bank of America, which has just completed the periodic update of its valuation matrix based on the 20 most widely used valuation metrics, and which finds that as of today, the S&P is substantially overvalued on 18 of 20 valuation metrics , with the only exceptions being free cash flow (helped again by depressed capex), and relative to small caps/bonds - the Fed's favorite indicator - where yields remain depressed thanks to the Fed's failure to stimulate wage inflation for nearly 9 years.