Grantham’s US stock market warning is alarmist

GMO founder and long-time bear Jeremy Grantham is sounding the alarm about US valuations in his latest missive.trades on a cyclically-adjusted price-earnings ratio of 34, which is “the top 1 per cent of history”. This, coupled with near-record profit margins, suggests investors are “predicting near perfection”.

Cape ratios were much lower in the distant past but have been rising for decades due to structural market changes. Indeed,’s quarterly Guide to the Markets shows the US Cape ratio has averaged 27.55 over the last 30 years. This suggests today’s valuations are challenging, but not wildly out of whack with recent decades. Indeed, the US Cape ratio was at similar levels in January 2018. Since then, the S&P 500 has almost doubled.

The Guinness heir on the future of the Iveagh Markets: ‘It’s going to turn into a jewel in the crown’Our weekly personal finance newsletter will give you the insight you need to save money and make smart spending decisions

Österreich Neuesten Nachrichten, Österreich Schlagzeilen

Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.

Business Today: Stock exchange plan, Ganley shares row and the tyranny of the meeting boreThe best news, analysis and comment from The Irish Times business desk
Herkunft: IrishTimesBiz - 🏆 6. / 77 Weiterlesen »

Dublin fintech Quantmatix dreams big for its ‘stock market GPS’The business was started by Liam Boggan and Paul Chew in 2021
Herkunft: businessposthq - 🏆 8. / 71 Weiterlesen »

Michael McGrath: I will work to revive Irish stock marketThe finance minister is visiting London as part of a three-day trip promoting Irish business
Herkunft: businessposthq - 🏆 8. / 71 Weiterlesen »