No Bubble Here
Bulls would argue that “this time is different” and that the chart above does not fully reflect upcoming earnings growth, Trump bump, inflation and new technologies from our alien friends from the Black Eye Galaxy (real name).
Yet, David Stockman blasts the blindness of the market saying, “the S&P 500s ratio of EBITDA to TEV (market equity plus net debt) is now truly in the sky-box section of history. It has never been close to the current level of 11.3X—except during a few months of sheer stock market mania at the turn of the century.”
Stockman lashes out, “Yet fools claim to see not even a hint of bubbles anywhere on the horizon.”
Sounds just about right to us.