- The stock market has entered full FOMO territory this year, according to JPMorgan’s Marko Kolanovic.
- And investor enthusiasm is not just concentrated in tech stocks, with broad market valuations appearing stretched.
- “There is complacency being built into stocks with VIX at the lows of its range,” Kolanovic said.
The stock market is overvalued, and it’s not just the tech sector that appears stretched, according to JPMorgan’s chief global market strategist Marko Kolanovic.
The S&P 500’s forward price-to-earnings ratio is currently 19.4x, and when you back out tech and AI stocks, the remaining 65% of the index trades at 17.4x, according to Kolanovic. That’s not cheap, as the historical forward P/E of the index is 15.3x, meaning that current valuations represent a 10% premium.
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