"Valuation Is The Market's Biggest Headwind"

Tyler Durden's picture

Yesterday, as the S&P closed above 2,000 for the first time, mainstream media pundits were trotted out to proclaim that either "stocks are 'fairly' valued" or "stocks are cheap" and the "money on the sidelines" must come in now. Aside from the 'idiocy' of the last comment, we thought BMO's Jack Ablin's comments were of note. "Valuation is the market’s biggest headwind,” he wrote, adding that sales “have to catch up” for stocks to sustain the rally. One glimpse at the following chart and it is clear that not only are stocks "not cheap" or "not fair" they are extremely rich with the only fall-back now being that "they're not as expensive as they were at the top of the biggest bubble in stocks ever."

 

 

 

Seems like BTFATH makes perfect sense in that light...

Source: Bloomberg