Markets priced to perfection

In reviewing the latest data from Crestmont Research (crestmontresearch.com) it is apparent stock market valuations are becoming very stretched and near the upper end of their historic levels.

Crestmont Research uses a unique methodology to calculate their P/E’s and Doug Short (dshort.com) has provided a plot of their P/E’s relative to rates of inflation for the period 1871-to-present.

As can be seen on the chart below ............ (continued here)