Since
traditional measures of valuation are broadly overvalued, analysts who are recommending additional equity exposure tend to use P / E ratios based on future estimates for operating earnings.
If you are to make really big money in the stock market, resign yourself to the fact that just about everything you buy, if you are buying stocks correctly, will seem too high priced by just about
any traditional measure of valuation.
Meanwhile, going into 2015, nearly
every traditional measure of valuation (e.g, price - to - earnings P / E, price - to - sales P / S, CAPE PE10, Tobin's Q, market - cap - to - GDP, etc.) placed stocks at extremely overvalued levels.
Not exact matches
Because as investors if you're looking at this current contemporary global macroeconomic backdrop from the 10 - 12 year perspective, I find it with the typical disclosure here that I'm not able to see with a perfect crystal ball or anything but it's hard to believe that
traditional assets, that global equities, will be thriving in this environment just from the simple perspective
of how overstretched they are from any reasonable
measure of valuation.
A Yale - led research team has adapted
traditional asset
valuation approaches to
measure the value
of such natural capital assets, linking economic measurements
of ecosystem services with models
of natural dynamics and human behavior.