Valuation – 12-Month Forward P/E Ranges (MSCI Regions)

Valuation – 12-Month Forward P/E Ranges (MSCI Regions) The current divergence of U.S. stock market valuations from historical averages has raised concerns about the sustainability of elevated levels and the potential for future market corrections. Image: Goldman Sachs Global Investment Research

Forward 10-Year Real Returns and CAPE Valuations

Forward 10-Year Real Returns and CAPE Valuations Will the U.S. stock market, with its unpredictable nature and ever-changing dynamics, leave investors disappointed with lackluster returns over the next 10 years? Image: Real Investment Advice

Valuation – S&P 500 Next-Twelve-Months P/E Multiple

Valuation – S&P 500 Forward P/E Multiple The S&P 500 is trading at relatively high valuations, which could potentially have an impact in the future. Unless there is a significant decline in yields, valuation expansion seems unlikely. Image: Goldman Sachs Global Investment Research

S&P 500 – CAPE Valuations

S&P 500 – CAPE Valuations While a high CAPE ratio can persist for extended periods without triggering a market correction, historical data suggests that such periods of elevated valuations are typically followed by lower stock market returns. Image: Real Investment Advice

Valuation – S&P 500 Forward P/E

Valuation – S&P 500 Forward P/E The Magnificent 7 stocks are considered expensive compared to the rest of the market, reflecting their strong growth potential and market dominance that investors are willing to pay a premium for. Image: Goldman Sachs Global Investment Research

Valuation – Real S&P 500 % Deviation from Exponential Growth Trend

Valuation – Real S&P 500 % Deviation from Exponential Growth Trend It is still reasonable to expect a reversion to the mean, given that the S&P 500 is currently experiencing one of the most significant deviations from its long-term exponential trend in recorded history. Image: Real Investment Advice

S&P 500 Valuation Metrics

S&P 500 Valuation Metrics Given that S&P 500 valuation metrics remain high by historical standards, should bears pay attention to expensive valuations, which suggest potential overvaluation? Image: BofA US Equity & Quant Strategy

U.S. Stockmarket Valuations – Combined PE Ratio

U.S. Stockmarket Valuations – Combined PE Ratio U.S. tech stocks are considered expensive compared to the rest of the market. While the rest of the market isn’t as expensive as tech stocks, it’s important to note that it is still not cheap. Image: Topdown Charts

CAPE Valuations and Deviation from Exponential Growth Trend

CAPE Valuations and Deviation from Exponential Growth Trend While the CAPE ratio is not a reliable timing signal for market turning points, historical data indicates a correlation between high CAPE ratios and lower future returns. Image: Real Investment Advice

S&P 500 Valuation Matrix (12-Month Forward EPS and P/E Multiple)

S&P 500 Valuation Matrix (12-Month Forward EPS and P/E Multiple) According to Morgan Stanley, U.S. equity market gains in 2024 may stall due to high forward multiples and ambitious earnings forecasts for the next 12 months. Image: Morgan Stanley Wealth Management