S&P 500 Valuations Remain Stretched Despite 2022 Bear Market
• S&P 500 almost as overvalued today as in January 2022 bull market peak, despite 2022 bear market • Typical pattern is for bear markets to work off bull market excesses, but that hasn't happened recently • Unusual and disappointing that valuations haven't improved more given last year's bear market • If market breaks out to new highs, valuations won't be the reason why • Author argues current valuations don't support conditions for a major new bull market leg