China Extends Gold Buying Streak as Reserves Surge Despite Volatile Prices 
Trump Signs Executive Order Threatening 25% Tariffs on Countries Trading With Iran 
Trump Endorses Japan’s Sanae Takaichi Ahead of Crucial Election Amid Market and China Tensions 
Russian Stocks End Mixed as MOEX Index Closes Flat Amid Commodity Strength 
South Korea Assures U.S. on Trade Deal Commitments Amid Tariff Concerns 
Dow Hits 50,000 as U.S. Stocks Stage Strong Rebound Amid AI Volatility 
South Africa Eyes ECB Repo Lines as Inflation Eases and Rate Cuts Loom 
Asian Stocks Slip as Tech Rout Deepens, Japan Steadies Ahead of Election 
Japanese Pharmaceutical Stocks Slide as TrumpRx.gov Launch Sparks Market Concerns 
S&P 500 has curved a fresh all-time high, just a few weeks ago and still hovering close by. However, the index, which is on its eighth consecutive yearly bull run in 2016, is looking a bit expensive by many fundamental measures, some of which are discussed below.
- S&P 500 dividend yield vs. 10-year treasury: Based on this measure, S&P 500 is about 156 percent more valuable compared to its long-term average.
- Enterprise value to sales: This ratio is currently around 2.25, 26 percent more than its long-term average.
- Shiller PE: This ratio is 57 percent above the long-term average.
- EV/EBITDA: This ratio is currently around 12, which is 22 percent more than normal.
- S&P 500 market cap/GDP: This ratio is currently at 1, which is 77 percent more than its long-term average.
- PB ratio: The Market price of S&P 500 is almost at 3 times compared to its book value and that is 17 percent higher compared to its long-term average.
It’s however, important to note, these fundamental valuations don’t suggest that the market would topple from here but they definitely urge for greater caution, while going long on the index.
