We are paying far more for earnings growth right now than we have at any other point in recent history (excluding the 2020 Covid outlier that saw businesses shuttered and earnings crater). The current PEG on SP500 is 1.9x. I'm amazed at how resilient the market is considering the poor outlook for the next year or two. Current forward PE multiple of 18-19x is the highest it was during the 2010s bull run despite much weaker earnings growth paired with 5% rates and quantitative tightening. We had 0% rates, quantitative easing and corporate tax cuts juicing markets back then. What's the upside on owning stocks here when you can get 5% risk free in a money market fund? Not making any crazy bets on timing a market pull back but taking a risk free 5% here seems like a smart play. Page 6 of Yardeni report released May 9 shows how ugly valuations are right now.
[link] [comments] https://www.reddit.com/r/stocks/comments/13d87m7/sp500_peg_highest_in_recent_history_excluding/
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