Strictly speaking, stocks are at "fair market value," and if one works on the presumption of efficient and healthy markets it is impossible for stocks to be "overvalued".
However, with the Fed actively altering the interest rate environment they are by extension actively altering the level of "fair market value".
Strictly speaking, stocks are at "fair market value," and if one works on the presumption of efficient and healthy markets it is impossible for stocks to be "overvalued".
However, with the Fed actively altering the interest rate environment they are by extension actively altering the level of "fair market value".
It's not that the traditional metrics don't matter, but that the Fed keeps changing the valuation ground rules.
Strictly speaking, stocks are at "fair market value," and if one works on the presumption of efficient and healthy markets it is impossible for stocks to be "overvalued".
However, with the Fed actively altering the interest rate environment they are by extension actively altering the level of "fair market value".
It's not that the traditional metrics don't matter, but that the Fed keeps changing the valuation ground rules.