Flying Blind, Part 3: Why Now Is Not The Time And Place For Nosebleed PE Multiples

As we indicated in Part 2, the very idea that you would pay 26X EPS for the S&P 500 at the tail end of a 103 month long recovery cycle is truly ludicrous. That is, there is a time to anticipate a strong profits rebound during the early years of a recovery, thereby meriting a robust PE multiple.