A high P/E is not a stock market sell signal

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A high P/E is not a stock market sell signal

Valuation metrics like the price-to-earnings (P/E) ratio help us understand whether a security is cheap or expensive relative to history. And there’s some evidence that valuations can tell you something about long-term returns.

However, as TKer Stock Market Truth No. 6 reminds us: Valuations offer almost no signal as to what prices will do in the coming year.

A high P/E is not a stock market sell signal ⚠️

Plus a charted review of the macro crosscurrents 🔀

www.tker.co