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Market P/E droped to single digit first time in almost 25 years

The broad market valuation, measured by trailing P/E of S&P500 index, for the first time since 1/1985 dropped below 10x today according to Bloomberg (see chart below; red line - P/E, yellow - price/book, green - price/sales and white - SP500). It looks like this negative momentum created by economic uncertainties and extreme risk reversion are still the dominate sentiments. We might be heading to 7-8x multiple soon. Talking about about insane and efficient markets!




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