Sky-high stock valuations, super-concentrated markets and the US government’s enormous interest bill — here are the charts spooking investors.
Precarious P/E: “We are at the third-highest valuations on the S&P 500 in modern history only behind 1999/2000 and 2021. If this valuation upside continues, it leaves forward-looking returns less compelling,” says Emily Roland, co-chief investment strategist for John Hancock Investment Management.
US concentration: “Current pricing prices a likely implausible concentration in earnings and wealth into US companies forever in the future. The last time the US showed a market cap share like this was just ahead of the tech bust, and we all know how that went,” says Bob Elliott, co-founder and CEO at Unlimited.
