Stock are not overvalued, folks. Because, you know, stocks valuations are no longer making any sense...
Via @HondoTomasz, comes this nice chart, plotting the 18-year high in S&P500 PE ratios (gamable) and the all-time highs in Price-to-Sales ratio (less gamable). Do remember, folks, sales are a positive function of inflation and inflation has been pretty weak, of late. Which means that sales are facing two headwinds at the same time: low inflation pressures and low demand growth pressures. Yet, share prices are just keep climbing up in this new economic paradigm that looks like the old Dot.Com paradigm.
