This chart is from John Hussman’s latest comment. It shows the price-to-sales ratio of the typical S&P 500 stock. The typical stock is now trading near a historic peak in relation to sales. With valuations so high, if you are still counting on double-digit returns to fund your retirement, this chart should give you pause.
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Jeremy Jones, CFA
Jeremy Jones, CFA is the Director of Research at Young Research & Publishing Inc., and the Chief Investment Officer at Richard C. Young & Co., Ltd. Jeremy is a contributing editor of youngresearch.com.
Latest posts by Jeremy Jones, CFA (see all)
- Are you Part of the Herd Inflating the Indexing Bubble? - July 19, 2019
- Man vs. Machines: Can Humans Win a New Stock Market War? - July 18, 2019
- Hard Criticism for Amazon’s Advertising - July 17, 2019