As we warned was likely to happen back in February of 2013 (given the typical trajectory of earnings expectations through a year), JP Morgan has confirmed that the S&P 500 is now more expensive on a forward P/E basis than it was at its peak in October 2007. So, despite the self-referential bias of each and every talking head asset-gatherer on mainstream media's denial, stocks do not offer value here… no matter how many TINAs or BTFATHs you hear…
At 15.4x NTM earnings, the S&P 500 is now 0.2x turns more expensive than at its peak in October 2007
Furthermore, on a Price-to-Book, Price-to-Cash-Flow, and Price-to-Sales basis, the S&P 500 is also well above its average valuation levels…
Still think we can grow into more multiple expansion… then you better hope for an unprecedented rise in confidence…
So, are stocks cheap?
Source: JPMorgan
     |
via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/JXBGv_TH_ho/story01.htm Tyler Durden