Today’s chart of the day comes courtesy of Reuters Jamie McGeever, and it shows that based on a BofA analysis, US stocks have never in history been more expensive relative to the rest of the world, surpassing both the dot com bubble and the housing bubble.
Add this to what we wrote over the weekend in “A Permabull Throws In The Towel: “Stocks Are Massively Overvalued”, Key Multiples Are Post-War Records“, namely that the median Price to Earnings and Price to Cash Flow multiples have likewise never been higher…
… and suddenly the “thesis” for investors over the past year, namely that “what are you going to do with your cash if not put it in the cleanest dirty shirt, the US stock market” is looking a little bit precarious.
Source: Zero Hedge