Excerpt from MarketWatch quoting DataTrek co-founder Nick Colas:
…. “The companies of the S&P 500 need to beat by an aggregate 10 percentage points this quarter, or we’ve almost certainly seen the highs on U.S. equity markets for the year,” said Nicholas Colas, co-founder of DataTrek Research, in a Monday note…
…Colas noted that companies in the S&P 500 reported earnings of $53 a share in the second-quarter. If that ends up being the post-pandemic peak, then U.S. large-cap stocks are “clearly overvalued” at 21 times earnings (a 4,400 S&P 500 divided by $53 and multiplied by four).
After all, Colas asked, “Who pays +20 (times) for declining earnings power? No one”….
Read the full article here on MarketWatch!