Scarily expensive, or dirt cheap? Cross-currents in the stock market’s $15 trillion wipeout are making it harder than ever to get a grip on valuations.
The S&P 500, even after a 21% drawdown this year, remains near or way above levels seen during the dot-com peak when plotted against sales or tangible assets. It altitude gets easier to justify versus earnings -- as long as earnings are real. Move down the ladder to smaller companies, and many stocks can be framed as bargains.