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by ratatouille72 3245 days ago
In hindsight
1 comments

The dotcom bubble wasn't subtle.

The housing bubble wasn't subtle.

The stock market presently trading at an extremely elevated multiple is not subtle (much less while simultaneously US GDP growth is averaging historic lows, and global growth is just OK). Simply put, stocks have soared without the earnings to support the move, it's overwhelmingly multiple expansion.

It doesn't require a magic 8-ball to be prudent and lighten up after the S&P and Dow have tripled from the bottom in 8 years.

Sure it does. That's why people are notoriously bad at timing markets.
Low interest rates explain a lot of the P/E changes. Same reason houses get more valuable when interest rates are low.