Why shouldn't S&P 500 trade for 30 times earnings ?
Valuation is a state of mind :) People are happiest when stock prices are in the stratosphere.
Don't be too surprised if we get there in a couple of years. Justifications will appear right on schedule.
because a recession has begun and the PE's will likely trade into the mid to high single digits before a bottom occurs. still have a bunch of earnings this week and ISM service sector report. Ripe for 20-30% pullback in equities right now. perhaps like the 2011 February-march correction or Sept-Dec 2008 all out crash?