Current Stock Valuations Suggest Market Is Shaky

Stock market crash

There seems to be no shortage of analysts willing to justify the current level of the market. As investors continue to pour money into ETFs to track the market’s gains, Wall Street analysts are only too happy to produce valuation models adjusted to hit at the best outcome. Analysts at Barclays have even gone so far as to say that “animal spirits” will continue to drive the market higher, ignoring all fundamental factors.

However, most of these Wall Street forecasts ignore historic evidence, the vast majority of which shows that investment portfolio returns significantly deteriorate in the years following peak valuations.

The two charts below are some of the best charts around to illustrate this point.

Current Stock...

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