Bloomberg Intelligence's 'Equity Market Minute' 6/3/2020

Gina Martin Adams discusses the S&P 500 valuation ratios, highlighting concerns about excessive optimism in stock prices. She examines forward PE ratios, noting that headline figures may be misleading due to cyclical pressures. Excluding certain high-earning stocks reduces the forward PE significantly. Additionally, she analyzes price to book ratios, revealing that over 60% of the index trades below long-term averages, especially in cyclically suppressed industries. The session concludes with a summary of these insights.

What concerns do investors have regarding the current stock prices?

What does the headline PE ratio indicate about the S&P 500?

How does excluding stocks trading above 60 times earnings affect the forward PE?

What percentage of the S&P 500 index has price to book ratios below the long-term average?

What industries are mentioned as having cyclically suppressed price to book ratios?