Scary Charts

February 08, 2017

I’ve seen the first chart various places (NDR, etc) and it details the median price/sales for the S&P 500 members. You can argue perhaps why it is this way, but you can’t argue that it is at an all time high.

I’ve also seen a variant of chart two various places (me, Montier), and it basically shows the higher the valuation, the lower the future returns and more importantly, the bigger the future drawdowns.