Are Stocks Undervalued Yet?

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Where’s the value? Some of the best indicators of the stock market aren’t encouraging

ByEveryone wants to know when the stock market, after its recent declines, will be a good value again.

The sobering news is that even at its lowest point in mid-May, the S&P 500 index wasn’t even close to being undervalued according to any of eight valuation models that my research shows have the best long-term track records.

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Valuations are rich. But, one could have said that over the past 30 years. A simple P/E chart of the SP500 going back to 1880 shows that. Timing the market is very hard. We're in for lower expected returns, or maybe just another regime. We simply don't fully understand markets.

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