Are Stocks Overpriced?

The average S&P 500 PE Ratio is 25.87, 65% greater than its long-term average of 15.68. The Shiller PE ratio, or cyclically adjusted PE ratio, sits at 32.65, 100% above its long-term average of 16.8, and the 14 day Relative Strength Index (RSI) is 72. By these metrics, it’s not a great time to be invested in stocks.

There are still great values in this market. Some examples include: JPMorgan Chase (JPM), Apple (AAPL), Amgen (AMGN), American Express (AXP), General Electric (GE), Amazon (AMZN), AT&T (T), Gilead (GILD), and Under Armour (UAA).

It’s hard to talk me out of being invested in stocks when there’s still great companies at good valuations.


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