How Overvalued is the Stock Market Right Now?

This shows the median S&P 500 P/E ratio is now even higher than it was in the tech bubble. But look at the dispersion around the median. There is a wide range between the top and bottom quintile of stocks.

The problem for investors is many of those stocks that have low valuations are cheap for a reason. And most of the stocks that have high valuations are expensive for a reason. Pick your poison.

I’m not trying to say stocks are cheap. I’m not even trying to say they’re not expensive.With interest rates so low and the market at all-time highs, I would almost be more worried if the stock market wasn’t expensive.

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