Search Results for: overvalue

S&P 500 Valuation Metric Is the U.S. equity market overvalued? The S&P 500’s median valuation metric is in the 89th percentile. That’s not cheap by historical standards. Image: Goldman Sachs Global Investment Research

Valuation – U.S. Equity Market Capitalization to GDP Is the U.S. stock market overvalued? The equity capitalization-to-GDP ratio hits a new all-time high. Image: Goldman Sachs Global Investment Research

Global Valuation Map This chart shows global valuation estimates across various countries, and suggests that the U.S. stock market is overvalued by +4%. Image: Morningstar Research

U.S. Dollar – Trade-Weighted Real Exchange Rates Chart suggesting that the U.S. dollar looks overvalued against euro and sterling. Image: Gavekal, Macrobond

Cyclicals vs. S&P 500 Chart suggesting that cyclicals are not overvalued vs. S&P 500. Image: Goldman Sachs Global Investment Research

U.S. Long Term Nominal GDP Growth and U.S. 10-Year Bond Yield According to this chart, U.S. bonds are overvalued. Image: Topdown Charts

The Equity Risk Premium May Be Bullish The equity risk premium suggests that the S&P 500 is not overvalued, which may be a bullish signal. You may also like our “Stock Market Equity Risk Premium.” Image: Fidelity Management and Research

Stock Market Capitalization as a Percentage of Nominal GDP This ratio is useful in determining whether the U.S. stock market is undervalued or overvalued relative to its historical average. The current reading is pretty high at 149.15%. You may also like the “Stock Market Valuation” and “S&P 500 Index – Earnings & Valuation.” Image: Bianco Research

S&P 500 Valuation Above Historical Average The S&P 500 is overvalued on 17 of 20 valuation metrics. You may also like our “Stock Market Valuation.” Image: Bank of America

The Gold to Oil Ratio since 2018 When the gold to oil ratio approaches 30x, oil is undervalued. When the gold to oil ratio approaches 10x, gold is undervalued. Today, the gold-oil ratio is below 20x. So, neither oil nor gold is undervalued nor overvalued relative to each other. Image: Goehring & Rozencwajg