0 
0 | P/E RATIO | DIV YIELD | ||||
|---|---|---|---|---|---|
| 12/31/20 | YEAR AGO | ESTIMATE^ | 12/31/20 | YEAR AGO | |
| Dow Jones Industrial Average | 30.11 | 21.47 | 24.91 | 1.97 | 2.20 |
| P/E RATIO | DIV YIELD | ||||
|---|---|---|---|---|---|
| 12/31/20 | YEAR AGO | ESTIMATE | 12/31/20 | YEAR AGO | |
| Russell 2000 Index | n.a. | 37.98 | 80.21 | 1.19 | 1.44 |
| NASDAQ 100 Index | 39.45 | 27.55 | 32.79 | 0.75 | 0.97 |
| S&P 500 Index | 40.40 | 25.53 | 26.75 | 1.60 | 1.82 |
S&P500 P/E Ratio 37.85 on the chart below can give a good clue of how stocks valuations are in an extreme irrational bubble
S&P 500 Price to Book Value 4.16 approaching 5.06 peak in year 2000
| Mean: | 2.84 | |
| Median: | 2.78 | |
| Min: | 1.78 | (Mar 2009) |
| Max: | 5.06 | (Mar 2000) |
S&P 500 Price to Sales Ratio setting new highs out of skew completely with economic growth.
| Mean: | 1.57 | |
| Median: | 1.50 | |
| Min: | 0.80 | (Mar 2009) |
| Max: | 2.45 | (Sep 2020) |
NASDAQ / S&P500 RATIO 3.41 ABOVE YEAR 2000 STOCK MARKET BUBBLE
The chart below elaborates together three macro main factors. The ultralow zero interest rate monetary policy produced a 0,10% Nominal Interest rate, negative Real Interest rate -1,06%, Inflation +1,18%
Case-Shiller Home Price to CPI Ratio (US) 0.88 near 0.91, 2007/09 Housing bubble
Wilshire 5000 to GDP Ratio, Market Cap to GDP ratio of 183%. Hyperinflated assets prices have risen above the year 2000 Technology stocks bubble and way above the 2007 housing market financial crisis.
M2 Money Supply vs. Inflation chart proves that M2 money growth soared to 25%, unseen levels, while inflation has consistently stood at 1,18% in Q4 2020, with a lower 0,36% in Q3 2020. Data proves that Central Banks money supply has inflated assets price exponentially to dangerous levels for financial stability, while inflation has consistently been low, in some macro areas as the Euro Area monetary policy and negative interest rates have created deflationary economic pressures, while financial assets prices have become hyperinflated.
