The $SPX PEG ratio just hit secularly low levels.
This matters. When you're paying 25x earnings but growth is slowing, the price-to-growth math stops working. We've seen this movie before — 2000, 2007, late 2021.
Valuation multiples don't collapse in isolation. They compress when the growth narrative cracks. And right now, the market is priced for perfection while forward estimates keep getting trimmed.
Not calling a crash. Just saying: when PEG ratios reach extremes, forward returns tend to disappoint. History is pretty clear on this.
This matters. When you're paying 25x earnings but growth is slowing, the price-to-growth math stops working. We've seen this movie before — 2000, 2007, late 2021.
Valuation multiples don't collapse in isolation. They compress when the growth narrative cracks. And right now, the market is priced for perfection while forward estimates keep getting trimmed.
Not calling a crash. Just saying: when PEG ratios reach extremes, forward returns tend to disappoint. History is pretty clear on this.
