After the rate hike is implemented, there is a valuation metric worth paying attention to.
#The latest Nasdaq 100 PE TTM is 28.38x, and over the past year the valuation percentile is only 3.7%.
In simple terms, during more than 96% of the past year, the Nasdaq’s valuation has been higher than the current level.
Compared with the data at the end of August, when the PE was 30.31x, it was at the 64.93th historical percentile since 2011.
In less than a month, valuation has retreated from being somewhat expensive to near the low end of the past year.
A low valuation does not necessarily mean the market will rise immediately, but with the same amount of capital, investors can now buy assets that correspond to more corporate earnings.
#The latest Nasdaq 100 PE TTM is 28.38x, and over the past year the valuation percentile is only 3.7%.
In simple terms, during more than 96% of the past year, the Nasdaq’s valuation has been higher than the current level.
Compared with the data at the end of August, when the PE was 30.31x, it was at the 64.93th historical percentile since 2011.
In less than a month, valuation has retreated from being somewhat expensive to near the low end of the past year.
A low valuation does not necessarily mean the market will rise immediately, but with the same amount of capital, investors can now buy assets that correspond to more corporate earnings.
