Median Stock Valuation In 99/100% Percentile In Terms Of PEG, PS, EV/EBTIDA, P/B, But…

After a decade of rising asset prices, but lackluster economic growth and real price expansion is it time to start worrying about bubbly markets? That’s the question Goldman Sachs’ Chief Global Equity Strategist Peter Oppenheimer asks in the bank’s September Global Investment Research monthly presentation about the bear necessities in a down market.

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• Warren Buffett’s Formula For Valuing All Assets
• Valuations: How A Number Cruncher Learned To Tell Stories!
• Fair-Value Cape Approach To Explain Stock Market’s Valuation
• Barclays: Animal Spirits Are Driving The Stock Market Euphoria

Bear Necessities

Since January 2009, there has been a wide dispersion between asset price inflation and the ‘real economy’ inflation. As shown in the chart below, asset prices have surpassed the returns of all ‘real economy’...