David Rosenberg observes that
…let it be known that these central banks have turned a blind eye to the excesses in the financial markets. The price-to-sales ratio for the S&P 500 has soared to 1.77x — actually taking out the 2000 bubble high to register the highest reading on sixty years. Hey, maybe it is totally justified across a broad array of measures. Frankly, I don’t care. Price-sales ratios are at sixdecade highs. Use that information any way you like…
…The party continues but down the road, understand … this will likely not end very well.
While earnings are still trending higher, the market’s near 8% advance this year on top of the 30% surge in 2014 is indicative of a market that is more than fully priced. In a nutshell, this market looks completely exhausted.