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 ([stock_quote symbol=”RUT” show=”symbol”]), Russell 1000 ([stock_quote symbol=”IWB” show=”symbol”]) and of course the S&P 500 ([stock_quote symbol=”SPY” show=”symbol”]). Google ([stock_quote symbol=”GOOG” show=”symbol”]) is overbought based on its relative strength index of 74.89 today. So is Facebook ([stock_quote symbol=”FB” show=”symbol”]), which has an RSI even higher than Google’s.

For some reason, no one told Walmart ([stock_quote symbol=”WMT” show=”symbol”]) 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 ([stock_quote symbol=”AMZN” show=”symbol”]), 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 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
Gold Ounce$1,272