Many folks will tell you the stock market looks expensive.
And they’re not exactly wrong.
The S&P 500’s forward price-to-earnings (P/E) ratio – the index divided by the estimated next-12 months’ earnings – is historically high at about 21.2, according to FactSet. This is significantly above its 5-year average of 18.5 and 10-year average of 16.6.
With the S&P 500 (^GSPC) trading near its Dec. 30 all-time high of 4,808.93, the stock market will be under intense scrutiny by traders and…
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