@KeithThompson-pq7zb As of January 24, 2025, the S&P 500 price-to-earnings (P/E) ratio was 28.77. Historically the range has been 20 to 22.... a 5x reduction in PE would bring us down to a reasonable multiple... Thats about a 20% correction
@@whatsgoodmyguy4391 You're looking at the TTM P/E which as I've shown is not the correct way to evaluate P/E ratio. You have to 'normalize' the earnings using 10-year trend.
Excellent presentation. Just Interesting how overvalued the market is right now. Crazy.
Appreciate it
Nice work professor.
Thanks
I agree, we are about 5x overvalued
Maybe 1.5 to 2K overvalued on the S&P500, unless you're referring to the Dow Jones
@KeithThompson-pq7zb As of January 24, 2025, the S&P 500 price-to-earnings (P/E) ratio was 28.77. Historically the range has been 20 to 22.... a 5x reduction in PE would bring us down to a reasonable multiple... Thats about a 20% correction
@@whatsgoodmyguy4391 You're looking at the TTM P/E which as I've shown is not the correct way to evaluate P/E ratio. You have to 'normalize' the earnings using 10-year trend.