Why Are Stock Valuations So High Right Now?
If you look at stock prices right now, you'd be excused for thinking they're high. That's because they are. The bigger question is: Why are they so high?
You can get a sense for just how pricey stocks are by looking at the Case-Shiller cyclically adjusted price-to-earnings ratio. This is a rolling 10-year average of the price-to-earnings ratio on the S&P 500.
Image source: Robert Shiller. Chart by author.
Source: Fool.com