So you think this market is too expensive, or possibly overbought, right? Join the club. Momentum continues to favor the Russell 2000 (
RUT 1,02 -0,12 -10,43%), Russell 1000 (
IWB 274,61 +2,72 +1,00%) and of course the S&P 500 (
SPY 515,71 +2,85 +0,56%). Google (
Google Inc. 148,74 -0,94 -0,63%) is overbought based on its relative strength index of 74.89 today. So is Facebook (
Facebook, Inc. 303,17 -13,39 -4,23%), which has an RSI even higher than Google’s.
For some reason, no one told Walmart (
WMT 60,87 -0,58 -0,94%) 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 (
AMZN 178,87 +0,72 +0,40%), 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 Indices |
Next year forward PE/Yield/Price |
| S&P 500 |
16.2x |
| MSCI Emerging Markets |
11.1x |
| MSCI Asia |
11.8x |
| Shanghai Composite |
11.9x |
| Hang Seng |
7.5x |
| MSCI EMEA |
9.4x |
| MSCI Latin America |
12.3x |
| 7-10yr U.S. Treasury |
2.31% |
| 10yr+ U.S. Treasury |
2.96% |
| 10yr+ German |
0.35% |
| 10yr+ Japan |
0.02% |
| U.S. High Yield Debt |
5.81% |
| European High Yield |
3.5% |
| Dollar Index |
99.06 |
| EUR/USD |
1.0849 |
| Brent |
$52.3 |
| Gold Ounce |
$1,272 |
