Market reassessment: Are stocks overpriced or fairly valued? – Nir Kaissar

The recent stock selloff has prompted a reassessment of whether the market is overpriced. Analyzing long-term earnings forecasts, it appears that 63% of S&P 500 companies trade below a historically fair P/E ratio of 18. Despite this, overvalued stocks could lead to a market decline of up to 27% if earnings expectations are downgraded. While most companies are reasonably priced, the market's reaction to earnings estimates will be crucial in determining future movements.

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By Nir Kaissar

The stock selloff of the past month is forcing investors to think about whether the market remains too high, and if so, how far it might fall.    

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