With occasional qualifiers as to whether examining All Stocks or Large Stocks,
traditional valuation measures work.
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 stock certificate trading at high
valuation based on
traditional measures such as price earnings ratio.
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.
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.