The S&P 500 is nearing 2,600 and the Dow is over 23,300. In fact, US stocks have only been more expensive two times since 1881.
The last two times the market reached such a high valuation were just before the Great Depression in 1929 and the tech bubble in 1999-2000.
Some of the blame for high valuation goes to the so-called “FANG” stocks (Facebook, Amazon, Netflix and Google), whose average P/E is now around 130.
But there’s something different about today’s bull market…
Simply put, everything is going up at once.