David Rosenberg Claims Market Is More Expensive Than Ever

By on October 22, 2009

Graham Summers reports that based on traditional measures of earnings, the market is the most expensive in history coming out of a recession. His views are backed by David Rosenberg, former Merrill Lynch economist. They claim, based on operating earnings, it’s twice as expensive as any other market in U. S. history.

SMA Comment: The S&P 500 at 666 was probably too low, but it’s hard to believe that conditions have improved enough to justify a 60% advance off the bottom. There will have to be more real improvement in the economy to stave off the laws of market gravity.



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