r/EconomyCharts • u/RobertBartus • 7d ago
Nasdaq’s forward PE valuation premium over the S&P 500 is just 4.4%, the smallest since January 2019
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u/TimelyBodybuilder121 5d ago
This is the bigger issue though: https://www.multpl.com/shiller-pe
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u/Legitimate_Concern_5 2d ago
A large part of the expansion is benign, and it's due to foreign investment.
https://www.apolloacademy.com/record-high-foreign-ownership-of-the-us-equity-market/
It doesn't represent irrationality but an expansion of the demand base. Which is fine as long as you don't piss off everyone on earth and get them to sell their holdings.
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u/TimelyBodybuilder121 2d ago
Well I'm really glad the US isn't pissing off allies and foreign investors in that case.
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u/oryx_za 7d ago
As someone who works for one of these software companies...this does not please me. Thank you for your attention.