Stocks Are Cheaper, But Not Cheap
Stocks sold off for many reasons and one that hasn’t gone away is rich valuations
Stocks are a lot less expensive than they were two weeks ago. Unfortunately, they are still far from cheap.
The S&P 500 has fallen 10% from the record it hit last month, and if you want to point fingers at reasons why there are plenty of targets. Worries over how much the Federal Reserve will have to raise interest rates certainly helped get the tumble going. The wipeout in products that bet against volatility played a role as well. So might the automatic dumping of stocks by some so-called risk-parity funds. The expected...