Courtesy of Mish.
In JP Morgan’s Quarterly Market Guide a pair of charts on page 31 caught my eye.
Forward PE Estimates
click on chart for sharper image
I don’t have any faith in forward PE estimates. They tend to be overly optimist and subject to numerous “one-time” writeoffs.
Instead, I recommend watching 10-year smoothed PE ratios. See discussion below.
Nonetheless, please note that even on a forward-basis, the S&P 500 ratio is well above most other markets.
Price to Book Valuations
On a price-to-book basis, US equities are twice as expensive as numerous other markets.
Case-Shiller Smoothed PE
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