As we move deeper into 2020, it’s a good time to provide an update on U.S. equity valuations.
Stocks are very expensive by most metrics, but there are many different opinions on how to value them and how highly they should be valued. So, this newsletter issue takes a look at current equity valuations from a few different angles, and then provides an update on ongoing coronavirus impacts.
Distance from an Idealized Market
In a healthy and well-ordered market, equity securities should ideally provide higher forward returns over the long run than long-term investment-grade fixed