Is the Stock Market Overvalued?
What 70 years of earnings & interest rates tell us about today's stock prices
Over the last 5 years, I’ve read a nauseating number of articles suggesting that the stock market was wildly overvalued. The underlying logic of their argument was the regurgitated “analysis” of current price-to-earnings (P/E) ratios compared with long-term averages.
They all go something like this:
“The average P/E ratio for stocks has been 16 over the …