Just How Expensive Is This Market?

So you think this market is too expensive, or possibly overbought, right? Join the club. Momentum continues to favor the Russell 2000 (Unfortunately, we could not get stock quote RUT this time.), Russell 1000 (Unfortunately, we could not get stock quote IWB this time.) and of course the S&P 500 (Unfortunately, we could not get stock quote SPY this time.). Google (Unfortunately, we could not get stock quote GOOG this time.) is overbought based on its relative strength index of 74.89 today. So is Facebook (Unfortunately, we could not get stock quote FB this time.), which has an RSI even higher than Google’s.

For some reason, no one told Walmart (Unfortunately, we could not get stock quote WMT this time.) that the grim reaper of retail is knocking on its door. Its momentum is through the roof with relative strength indicators showing it to be overbought as well. Walmart’s price to earnings is 17.1 times, more than the S&P 500 average of 16.2x. It’s still cheaper than Amazon (Unfortunately, we could not get stock quote AMZN this time.), which has a trailing multiple of more than 100 times.

Here is a look at the forward multiples for some of the biggest indexes in the world. Think we’re too expensive? You might have to look outside of the United States to find value.

Worth noting: some of these yields are ridiculous. So much for fixed income in the investment grade bond space again next year.

Global IndicesNext year forward PE/Yield/Price
S&P 50016.2x
MSCI Emerging Markets11.1x
MSCI Asia11.8x
Shanghai Composite11.9x
Hang Seng7.5x
MSCI EMEA9.4x
MSCI Latin America12.3x
7-10yr U.S. Treasury2.31%
10yr+ U.S. Treasury2.96%
10yr+ German0.35%
10yr+ Japan0.02%
U.S. High Yield Debt5.81%
European High Yield3.5%
Dollar Index99.06
EUR/USD1.0849
Brent$52.3
Gold Ounce$1,272
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