Are Stocks Cheap?

Absent the "obvious" bubble in the late 90s, the US equity market is at its most expensive valuation since right before the '30s crash. As Bloomberg notes, thanks to the exuberance of stocks in the last quarter, Pavilion Global Markets has calculated Tobin's Q (a valuation indicator based on market 'price' versus 'asset value' for non-financial companies) has only been higher at the peak of bubble exuberance. Still want to BTFATH? Afraid of missing out?

The index posted a dramatic 7.5% rise in Q4 so far pressing it to near-record levels absent the euphoria of the late 90s.

 

Chart: Bloomberg