Research

How expensive is the stock market right now?

Whether 'the market' is expensive depends enormously on which market you mean. Judged by the cyclically-adjusted earnings multiple on the cap-weighted S&P 500, valuations sit near the richest readings in decades. Judged by the median stock, small caps, non-US equities, or most bank and energy names, valuations look far closer to historical norms, and in some pockets genuinely cheap. This report…