As we warned was likely to happen back in February of 2013 (given the typical trajectory of earnings expectations through a year) [2], JP Morgan has confirmed that the S&P 500 is now more expensive on a forward P/E basis than it was at its peak in October 2007. So, despite the self-referential bias of each and every talking head asset-gatherer on mainstream media's denial, stocks do not offer value here... no matter how many TINAs or BTFATHs you hear...
At 15.4x NTM earnings, the S&P 500 is now 0.2x turns more expensive than at its peak in October 2007
[3]
Furthermore, on a Price-to-Book, Price-to-Cash-Flow, and Price-to-Sales basis, the S&P 500 is also well above its average valuation levels...
[4]
Still think we can grow into more multiple expansion... then you better hope for an unprecedented rise in confidence...
[5]
So, are stocks cheap?
Source: JPMorgan