The S&P 500, a stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the United States, is currently trading at all-time highs. This has led to a common perception that stocks are super expensive. However, it’s crucial to understand that not all stocks are costly, and there are still opportunities for investors to uncover value in the market.
The S&P 500 is expensive now, trading at 20.4 times earnings. This high price-to-earnings (P/E) ratio indicates that investors are willing to pay a high price for each dollar of revenues the companies generate in the index. A graph depicting the P/E ratio of
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