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JPMorgan Shows The US Is The Most Expensive Developed Market In The World

Tyler Durden's picture




 

Presented with little comment, as the chart speaks for itself, but for those greatly rotating their 'cash on the sidelines' into stocks; JPMorgan points out that US equities are 2 standard deviations rich to their average valuation and are in fact the most expensive in the developed world...

 

 

Just don't tell Tom Lee...

 

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Fri, 01/03/2014 - 20:14 | 4298268 Soul Glow
Soul Glow's picture

Fuck corporations anyway.  Who wants to invest in something that lies, cheats, and steals their way to the top.  Might as well find a gold digger who will at least have sex with you until all your money is gone.

Fri, 01/03/2014 - 20:45 | 4298340 wee-weed up
wee-weed up's picture

 

 

Correction...

JPMorgan DOES NOT show the US is the most expensive developed market in the world...

JPMorgue shows the US is the most MANIPULATED market in the world!

 

***Footnote***  Ben Bernanke & Janet Yellen approve of this message.

Sat, 01/04/2014 - 23:57 | 4301038 DOGGONE
Fri, 01/03/2014 - 20:15 | 4298269 Rainman
Rainman's picture

Happy Fukkin' New Year from the Central Planning Control Center !!

Fri, 01/03/2014 - 20:17 | 4298279 NOTaREALmerican
NOTaREALmerican's picture

We've had many generations of above average kids who have matured into leadership roles and have now lead this great and glorious nation to unheard of wealth.

We're expensive, but that's because of American Exceptionalism.

Fri, 01/03/2014 - 20:45 | 4298354 Carl Popper
Carl Popper's picture

I want the real MDB back

 

Fri, 01/03/2014 - 20:22 | 4298284 BurningFuld
BurningFuld's picture

Now that's just a silly observation. Didn't you just print the economy of Canada in the last year?

Fri, 01/03/2014 - 20:24 | 4298295 kaiserhoff
kaiserhoff's picture

What is the intrinsic value of Anything bolted down in Japan?

Fri, 01/03/2014 - 20:31 | 4298322 NoDebt
NoDebt's picture

Irradiated or Non-irradiated?

 

Fri, 01/03/2014 - 20:19 | 4298288 kaiserhoff
kaiserhoff's picture

Thanks for your service,

  Mr. BenYellen.

Fri, 01/03/2014 - 20:24 | 4298296 One And Only
One And Only's picture

Not enough standard deviations. We can do better.

Keep it up team FED.

Fri, 01/03/2014 - 20:25 | 4298298 I am Jobe
I am Jobe's picture

But IHOP says otherwise. All you can eat Pancakes are back. Now that is welath effect for very many Amerikans

 

Fri, 01/03/2014 - 20:30 | 4298318 FieldingMellish
FieldingMellish's picture

"Bulge" bracket wealth...

Fri, 01/03/2014 - 20:28 | 4298299 TheRideNeverEnds
TheRideNeverEnds's picture

Twitter is a 37.5 BILLION dollar company that has never made a profit; your point is invalid.

 

When you value things based on something that has a theoretical maximum supply of infinity and the supplier has said in no uncertain terms we are going to infinity and beyond then we can just keep adding zeros and value is in the eye of the bagholder...   

Fri, 01/03/2014 - 20:36 | 4298333 NoDebt
NoDebt's picture

Yeah, but they're in a growth and adoption phase.  You need to look at their value as a multiple of REVENUE, not their profit at this stage of maturity.  And their revenues are..... oh, wait.  Nevermind.  Go on about your business.

Sat, 01/04/2014 - 02:11 | 4299131 Big Brother
Big Brother's picture

So what you're tellin' me is those $42.00 Jan 14 Calls I sold were not a good idea? /sarc

Fri, 01/03/2014 - 20:30 | 4298307 bobert
bobert's picture

I'm not rotating cash into stocks but do maintain a long position in stocks for 2014 and holdings in certain investment grade bonds.

Don't mean to be dissapointing to the typical ZH'r, however, my call is that the S&P 500 closes this year at 2000.

Fri, 01/03/2014 - 20:34 | 4298320 DOGGONE
DOGGONE's picture

The Public Be Suckered
http://patrick.net/forum/?p=1230886

Fri, 01/03/2014 - 20:40 | 4298346 Greenskeeper_Carl
Greenskeeper_Carl's picture

Come on people, as we all know, since krugman and the bernanke have told us, endless money printing, coupled with BTFATH is the path to prosperity for all. Somebody needs to tell those whiners that used to be middle class that all their financial problems will go away if the buy some twitter and triple leveraged S&P

Fri, 01/03/2014 - 20:41 | 4298352 DOGGONE
DOGGONE's picture

Why are these price histories rarely shown?
http://www.showrealhist.com/RD_RJShomes_PSav.html
You don't suppose they are trying to sucker us, do you??

Fri, 01/03/2014 - 20:54 | 4298376 Yen Cross
Yen Cross's picture

    A lot of us have oscillators on our trading platforms that can calculate standard deviation. I was doing some brushing up on how to calculate, and the explanation of standard deviation, and came across this piece. It's a great easy read for someone that is learning about the topic.

          Expected Return, Variance And Standard Deviation Of A Portfolio - Complete Guide To Corporate Finance | Investopedia

Fri, 01/03/2014 - 21:21 | 4298472 disabledvet
disabledvet's picture

"standard deviations" implies statistical analysis and is NOT "numbers." this is not to besmerch or belittle statistics...if you haven't mastered the concepts behind the Monte Carlo method which were invented in the United States in the 1940's don't even bother coming to the table. But every book on it (and there are many great ones) says the same thing in the introduction: "to be used only as a last resort" the reason being "if a flip coin a million times in a row and it comes up heads every time...the odds of it coming up either heads or tails the next time is still the same. 50/50." in other words "standard deviations purport to know the future" when in fact "that's just approximation of the future" and not the future itself. in short "there is no substitute for math." for example "when i short the Yen who am I trading against here?" and the answer is "Toyota, Mitsubishi, Honda, Nissan, Mazda, Sony, Yamaha, Nikon, Canon, Bank of Tokyo/Mitsubishi, the BOJ, the newly created Japanese National Security Council" etc, etc. Not saying "you're gonna win on that trade" just pointing out..the NUMBERS (the most important one being the Yen being a very large reserve currency.) is the market "expensive"? sure. As expensive as 1929 or 1995-1999? Not even close. And since we live in a fiat world...we in fact live in a world of liquidity..."numbers" as it were...not standard deviations, not reversions to the mean. in short "infinity is on the table." this is just my view but in markets like this all you need to know is "know your risk, know your liquidity profile." gold is money...but it is not a liquid asset. in other words it provides no income whatsoever let alone "internal cash flow." interestingly...neither does bitcoin...which doesn't even exist in physical form! "and that coin is up well over 1000 percent in just six weeks." and you want me to start shorting the dollar?! here's an idea...go back to minting real copper pennies "pre 1911." the irony of course is that copper serves almost ZERO value in the modern world and we have BILLIONS of tons of it. "why not use it as money then?" http://sam.davyson.com/as/physics/aluminium/siteus/abundance.html

Sat, 01/04/2014 - 08:06 | 4299388 negative rates
negative rates's picture

You can come to the table, but you will leave with a belly ache that will cost the young their chance to come to the table, and you don't why, but we do!

Fri, 01/03/2014 - 20:59 | 4298405 TrustWho
TrustWho's picture

We need MOAR printing to get to 3 standard deviations.  QEeen Yellen needs to prove no mortal man can compete with her. 

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