Everyone wants to know when the stock market, after its recent declines, will be a good value again.
The sobering news is that even at its lowest point in mid-May, the S&P 500 index wasn’t even close to being undervalued according to any of eight valuation models that my research shows have the best long-term track records.
The recent bounce in the S&P 500—up 5.3% since May 19—could be just a passing bear-market rally, or it could be a new bull-market leg.
But if it proves to be the latter, it is all but certain that factors other than undervaluation are helping drive stocks higher.
The eight valuation indicators that have proved best at predicting 10-year returns, inflation-adjusted, for the stock market are a subject I have covered before. And while it is possible that other valuation models exist that are just as good at…
