(Source: imgflip)
This holiday season investors have a lot to be thankful for, including a stock market that's enjoying its second-best year since 2013.
(Source: Ycharts)
Of course, the downside to a 28% rally in a year with virtually no earnings growth is that valuations get stretched, raising near-term pullback risk and resulting in lower returns in the future.
The current consensus forward EPS for the S&P 500 is $172.5, meaning that as I write this, the forward PE on the broader market is 18.2. That's 12% above the 25-year average of 16.2. It's also