Investing.com investing.com 08 Jan, 2021 11:45 am

If This Is A Stock Market Bubble, It May Have Further To Go

If This Is A Stock Market Bubble, It May Have Further To Go
Stocks Analysis by Michael Kramer covering: S&P 500, SPDR S&P 500. Read Michael Kramer's latest article on Investing.com

Which has sent the S&P 500 PE ratio soaring and pushed its earnings yield to its lowest level since early 2000.When comparing the S&P 500 earnings yield to the 10-year, it trades at a 4.In 2000, the earnings yield traded with a 2% discount to the 10-year rate.An earnings yield that is at a 4% premium to the 10-year has been, at least since 2010, the peak valuation.

It shows just how exuberant it got in the late 1990s.But to some degree, it was different in the late 1990s because rates on the 10-year were much higher, at 4, 5, and even 6%.

Read full story at investing.com