SmartStops Comment: We couldn’t agree more with this author.
From Seeking Alpha, Contrarian Profits
The bulls are back out in force, as the hiccups from a few weeks ago seem a distant memory. Indexes have resumed breaking records on a regular basis, and all seems right with the world.
Great – trust me, few things make me happier than a happy market. I like making money as much as the next guy.
But I’m also a little more suspicious than the next guy. And right now, that suspicion is warranted.
… Today, the average price-to-earnings ratio of an S&P 500 stock is a hair below 19. The long-term average is right around 15. We’re solidly sitting in overbought territory. Stocks are expensive right now.