S&P 500 Forward P/E Hits A Bubblicious 16.4x
Reaching heights not yet seen since the 2007 pre-crash bubble (15.7x), the S&P 500 price to earnings ratio is signaling trouble.
The S&P 500 has surged 205% since March-09. Not coincidently the Fed’s Reserve’s balance sheet has expanded to over $4 Trillion in the same time period.
Curiously, somebody has impeccable market timing:
Mar 4, 2009 – President Obama said Tuesday this might be a smart time to buy into the stock market.
“What you’re now seeing is profit-and-earning ratios are starting to get to the point where buying stocks is a potentially good deal if you’ve got a long-term perspective on it,” Obama said Tuesday.