Blogging Blodget

Henry Blodget has a post that gives the latest update on the only two overall market valuation measures that have ever made any sense to me -- Tobin's Q and the cyclically adjusted PE ratio. The upshot is really just what you'd expect, namely that US stocks are still a bit expensive by historical measures, and that's without even imagining that we are going to experience a tougher than normal cyclical downturn. Take a look at the chart to see just how bad it can get.