Day after day we are bombarded by self-referential talking-heads bloviating on the last extrapolated data point and how that means to buy the dip because at "Name Your P/E ratio" stocks are still cheap. Well on a long enough timeline, the current 16.3x P/E is in fact extremely fair. While many point to entirely bubble-prone 28.6x peak in 2000 as 'evidence' that we can go much higher, the facts are that over the last 113 years of US equity markets, as P/E between 15.1x and 18x has indeed marked the 'top'. So are stocks cheap?
Chart: JPMorgan, h/t @noalpha_allbeta