Do Good Times Make Bad Times? P/E Ratios and Forward Returns
It’s been a fun year for stock market investors. The S&P 500 has rallied over 22% this year, setting nearly 50 record highs as the current bull market recently celebrated its second birthday. Throughout the record-setting rally this year, even as corporate profits broadly backed lofty valuations, market watchers from Wall Street to Main Street have cited stretched valuations.
