🚨Is the US stock market headed for a prolonged bear market?

Time to revisit the US stock market valuation and concentration metrics

Author

Global Markets Investor
April 24, 2025

In January, you could read a comprehensive analysis about the US stock market historic overvaluation and concentration concluding that 2025 will likely be a tough year:

“Lastly, when we combine trailing P/E (reported earnings), forward P/E (estimated earnings), CAPE (the average reported earnings for the last 10 years, adjusted for inflation), price to book (P/B), price to sales (P/S), EV/EBITDA, Tobin’s Q ratio, and the market capitalization to GDP then the S&P 500 valuations are at their highest in the entire history of modern financial markets.
Investors are definitely pricing stocks for perfection. There is no margin for error.”

⚠️The US stock market is priced in for perfection and almost every investor believes in it

The next important test for the markets is coming during the last week of January

globalmarketsinvestor.beehiiv.com/p/the-us-stock-market-is-priced-in

And here we are, the S&P 500 and the Nasdaq both have experienced one of the toughest starts to the year this century. It will now be a good time to revisit the US stock market valuations, its concentration, and compare it to the rest of the world. Full analysis available behind the paywall.

🚨Is the United States going to default on its public debt?

What is a Mar-a-Lago Accord and how it could reshape the global financial system?

globalmarketsinvestor.beehiiv.com/p/is-the-united-states-going-to-default-on-its-public-debt

⚠️Be mindful of bear market rallies

Bear markets make fools of both bulls and bears

t.co/rUt1TqhnpX

VALUATIONS HAVE COOLED DOWN, BUT ARE THEY LOW ENOUGH?

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