3 Reasons Why This Market Still Has Room to Run

The S&P 500 now sports a price-to-earnings ratio of more than 26—a huge number at a time when corporate profits are actually down more than 5% since 2014. You read that right. Investors appear to be overpaying for falling profits. Look closer and things seem scarier. In August 2000, at the height of the dot-com bubble, the S&P 500 had a P/E ratio of 28, just 6% above its current level. If the stock market continues to perform as it has in the last few months, we could get to that same level by summer. Then look at volatility. The CBOE Volatility Index, often called the “fear indicator,” is currently 13 and was below 10 just a few months ago. That’s its lowest point in history ... Read more