"This is the end, Beautiful friend
This is the end, My only friend, The end.
Jim Morrison sang that song in 1966, interesting timing that!
The idea that there is a huge rally ahead of us now is absurd to me!
Stock valuations as measured by John Hussmans margin adjusted PE,
are now well above 2007, 2000, 1987, 1966,
and of course we have pipped above 1929 also in this rolling top formation over the last year.
The market is sitting at 45 times earnings now.
You are not paying for a revenue stream of cash flows when buying a stock at these valuations.
No one could live long enough now to make the average dividend yield worth paying for now!
If you are looking for a quick way to destroy your wealth,
by the way,
Significant lows occur in the region of between 5 and 15 times earnings.
Look out below.