Stocks are still expensive, says Barry Ritholtz (and he’s right). The average P/E ratio for the S&P 500 for the trailing twelve months is 21X, still well above last year’s reading of 17X. The Nasdaq is trading at 29X compared to 25X a year ago. This suggests that the correction is closer to the end of the beginning than the beginning of the end.
Of course, as usual, the forecasts of Wall Street analysts are an almost perfect lagging indicator. Barry clips this chart from SG Equity Research:
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