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.
The following two tabs change content below.
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.