2min chapter

Animal Spirits Podcast cover image

Are Stocks Cheap? (EP.312)

Animal Spirits Podcast

CHAPTER

The Irony of Stocks Going Up Most of the Time

The Nasdaq 100 is up 30% year to date. The average multiple on trough earnings has been exactly 20 times, Bank of America reports. Excluding the largest 50 stocks in the S&P 500, the index trades at just 15 times earnings. That's a full standard deviation below the historical average multiple of 18 times.

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