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The S&P500’s Valuation Just Surpassed The Dot Com Bubble

It’s official: a few weeks after the S&P hit an all time high price erasing all the losses from the covid crisis which just so happened was the best thing to ever happen to large corporations and the ultra wealthy, moments ago the S&P500’s forward P/E multiple also hit an all time high, surpassing the dot com peak of 27x, printing at 27.02x last.

So with the S&P now trading at an all time absolute price and a record high forward P/E multiple, it also means that the S&P500 is now the most disconnected – to the upside – from both the median and average Wall Street target on record, which are 3,200 and 3,198, respectively.

And the cherry on top: with the S&P at 3,550 currently, it is above all but two of the sellside strategist forecasts tracked by Bloomberg, which would be Cantor Fitzgerald, and Goldman, which hiked its price target from 3,000 to 3,600 two weeks ago (the S&P is even above the perpetually cheerful permabull Tom Lee’s target of 3,525).

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