Analysts have again suggested us to pay attention to the position of American equities in the volatility in the volatility indicators of the market.
In a context of increasing bond performance it is worth looking at S&P500 valuation indicators. The averages of share price and book value (P/BV) and share price and sales (P/S) ratios in the present year are one of the highest in the contemporary market era since 1990 .
During this period S&The extreme overvaluation level of the P/E coefficient (the price of the share and the proportion of the profit to one share ) is 30, but the current value of 24,6 is also high. And at most 1,28 percent of the dividend yield is the lowest since the dot com bubble time.
For such market valuation parameters the increasing threat is the yield ofbonds.Ifthiscontinues,thenattherightmomenttheballoonwillspikeandthecapitalof theequitymarketwillmovetothebondmarket.
