Is The Stock Market Overvalued?Impossible to say, but I know that valuations of the broader market are getting a bit stretched here. As I previously mentioned, the Shiller P/E ratio stands right now – well above the long-term average of 16.5. Make what you want of that, but I believe that spells pricey stocks in general. If you don’t like Shiller’s cyclically adjusted 10-year P/E ratio, you can also use the S&P 500′s own TTM P/E ratio. This metric is at , which is significantly higher than the average of 15 going back more than 100 years.
I Invest In Individual Businesses, Not The Entire Stock Market
Why I’m Not Worried About Investing Fresh Capital Right Now
The Long Game
ConclusionFull Disclosure: Long KO and MCD.
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