Are stocks cheap? Most are, actually

  • 📰 globeandmail
  • ⏱ Reading Time:
  • 22 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 12%
  • Publisher: 92%

Business News News

Business Business Latest News,Business Business Headlines

The S&P 500 seems pricey only because a handful of giant U.S. stocks are trading at lofty and perhaps unsustainable levels, expert says

Investors face an interesting paradox these days: The world’s most widely followed stock market index, the S&P 500, appears expensive, no matter how you gauge such things; however, most individual stocks in the index look to be reasonably priced.

The biggest 10 stocks typically account for between 15 and 25 per cent of the S&P 500′s value. These days, though, they make up 30 per cent, the highest level in a quarter-century. They now trade for more than 29 times their forward, or expected, earnings. This is nosebleed territory, far above historical norms. The lofty valuations suggest investors may be suffering from an outbreak of irrational exuberance.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 5. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

RONA Inc. getting rid of 500 jobs across Canada, citing 'new market realities'RONA Inc. says it's eliminating 500 jobs across Canada in a bid to simplify its organizational structure.
Source: CTVNews - 🏆 1. / 99 Read more »

RONA Inc. getting rid of 500 jobs across Canada, citing 'new market realities' - BNN BloombergRONA Inc. says it's eliminating 500 jobs across Canada in a bid to simplify its organizational structure.
Source: BNNBloomberg - 🏆 83. / 50 Read more »

RONA Inc. getting rid of 500 jobs across Canada, citing 'new market realities'The company says decisions like these are never taken lightly.
Source: BurnabyNOW_News - 🏆 14. / 77 Read more »