Salient to Investors:
The stock market is massively overvalued based on multiple measures due to crony financial leverage that has created wealth inequality that is now the worst we have seen during multiple generations.
The PE ratio of the S&P 500 is 24.9, or 80 percent higher than the historical average of 13.8 going back to 1870.
The Fed is debasing savings so people are heavily invested in stocks, art, and real estate to preserve wealth.
The majority of Americans do not own any stocks.
Many companies have boosted earnings by slashing benefits and wages, while the pressure of big money looking for a home has made housing more expensive for the working class.
The unemployment rate keeps dropping because we have more people falling out of the labor force: including this shadow labor force of 12 million people puts the real unemployment rate at 11 percent.
In 2013, the two biggest growth sectors for consumer debt came through auto debt and student debt?
Since 2009, nearly 30 percent of all home purchases have gone to Wall Street or hedge fund investors, causing rents to rise despite no rise in income – real inflation for the working and middle class.
Read the full article at http://www.mybudget360.com/stock-market-valuation-stock-market-pe-ratio-over-valued/
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