David Stockman: Now Is Not The Time And Place For Nosebleed PE Multiples

By David Stockman as originally published on Contra Corner and reprinted here with permission As we indicated in Part 2, the very idea that you would pay 26X EPS for the S&P 500 at the tail end of a 103 month long recovery cycle is truly ludicrous. That is, there is a time to anticipate a strong profits rebound during the early years of a recovery, thereby meriting a robust PE multiple. But there is also the obvious point that expansions eventually become long in the tooth and end in
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