Most. Expensive. Market. Ever

Tyler Durden's picture

Are stocks cheap? Is the 'Stock-Market' "priced-for-perfection"? Here is your answer...

The answer is - Yes and Yes-er!

h/t @Not_Jim_Cramer

 

Simply put, the S&P 500's forward earnings based valuation has never (in the history of the time series) been higher relative to consensus expectations of economic growth... ever.

So next time your "wealth"-taxer suggests you buy-the-f##king-dip, show him the chart above and have him explain how economists "must" be under-estimating growth, because equity analysts are never wrong.

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Lets_Eat_Ben's picture

Looks ready to move higher

Dr. Engali's picture

1.86% and it's going much lower.

Soul Glow's picture

Let's see, oil price crash....check.  Treasury yield collapse...check.

Yep, looks like a stock market collapse is on the horizon.

Dr. Engali's picture

Funny how they have us trained that way.

Keyser's picture

All those people that are fleeing into USTs for security will be quite disappointed when they are forced to accept pennies on the dollar when the truth is revealed... The US has been monetizing 100% of it's debt for years via smoke and mirrors... 

Rainman's picture

wait a minute ...something in the POMO handbook talks about the procedure for 'non-GAAP-ing to perfection'.

Soul Glow's picture

Tim Cook's going to need a bigger buyback.

BandGap's picture

Fasten your seat belt, the ride is going to end in a flourish.

Seasmoke's picture

Slow down Tyler. I can't keep up !!!!

Mr. Universe's picture

 

Louis Winthorpe III: [approaching the New York Commodities Exchange] Think big, think positive, never show any sign of weakness. Always go for the throat. Buy low, sell high. Fear? That's the other guy's problem. Nothing you have ever experienced will prepare you for the absolute carnage you are about to witness. Super Bowl, World Series - they don't know what pressure is. In this building, it's either kill or be killed. You make no friends in the pits and you take no prisoners. One minute you're up half a million in soybeans and the next, boom, your kids don't go to college and they've repossessed your Bentley. Are you with me?

Billy Ray Valentine: Yeah, we got to kill the motherf... - we got to kill 'em!

CarpetShag's picture

The reverse cock-and-balls formation in the center of the chart betrays everything.

Yen Cross's picture

   Here comes the panic buying.

 Vol is pretty pathetic though, so it's probably just short covering.

 

Prev. Close16,449.18 Volume85,109,013 Day's Range16,108.44 - 16,420.21 Open16,420.21 Average Vol. (3m)125,375,583 52 wk Range15,370.33 - 18,351.36 1-Year Return - 4.17%
Soul Glow's picture

They're trying but hitting a brick wall.  10 year at 1.86%, gold is moving north, stocks can't get bid.  It's going to be a long month for the Fed.

Yen Cross's picture

 You can really see the chop on the VIX and Dow m-1 charts.

Dr. Engali's picture

Fundamentals...lol..., what a barbaric concept in the new abnormal.  

economessed's picture

Wealth effect!  Can you dig it?

Chuckster's picture

Does anyone watch Yahoo finance headlines.  They must be written by a group of 10 year olds.  When the market goes down it must be caused by oil.  They continually go overboard to promote the market when it goes up.

DirkDiggler11's picture

No.

Nobody on ZH watched Yahoo Finance headlines.

UncleChopChop's picture

ive watched yahoo news headlines when i can stomach it, and i can tell you, they're not written by 10 year olds. they're written by people who are deliberately trying to mislead the masses into believing lies. welcome to zerohedge chuckster. settle in and get comfortable. it's going to be a bumpy ride.

UncleChopChop's picture

emotionally 10yr olds maybe. but in the eyes of the world, probably considered 'adult'.

CHX's picture

Stox will eventually trickle down too...

Gold Dog's picture

It's not a stock market, it's a market of stocks.

My allocation of PM's keeps going up and down even though I haven't sold or purchased any in a while, WTF?

Keep your powder dry my brother Hedgers, the day will come when you can make the investments of a lifetime.

 

Your friend,

Dog

MrSteve's picture

This market mix-up is just the digestion of the Iowa Caucus news and everyone figuring out what it means now that The Donald is a loser. Does not compute : Divide by zero : SNAFU+FUBAR

 

 

GemRavager's picture

P/E ratio divided by consensus? what does that mean? I know what P/E is.. pls help

rex-lacrymarum's picture

I would suggest not to worry - it's gonna get cheaper. Possibly in a hurry.