Despite caution from Bob Shiller that stocks are "hovering at worrisome levels," the FOMC Minutes yesterday (and various Fed speakers and talking heads this morning) have reassured the investing public that stocks are "cheap" and it's credit and bonds that are rich and bubbly. However, as the following simple table from Bloomberg Briefs shows, concerns over "frothy" valuations is warranted - especially in light of P/Es above previous bubble peak levels [3].
[4]
Which should not be a surprise... since Forward P/Es are already aboive the previous bubble peak...
[5]
As we have noted previosuly...
Are Stocks Cheap?
Price-to-Sales - Nope!
[6]
Price-to-Earnings - Nope!
[7]
Price-to-Cash-Flow - Nope!
[8]
Source: Gavekal [9]
* * *
So BTFATH because Yellen is about to speak...
