I Am Collecting Magnificent 7% Yields At Bargain Prices

Large-cap equities are trading at 20.8x P/E, described as a valuation disconnect last seen in 2001, while the S&P 500 would be 33% lower absent valuation expansion over the past 15 years. By contrast, small- and mid-caps trade at a historically reasonable 16x P/E and are characterized as attractive. The piece is a valuation warning rather than a catalyst-driven market event.

Analysis

Large-cap equities are trading at 20.8x P/E, described as a valuation disconnect last seen in 2001, while the S&P 500 would be 33% lower absent valuation expansion over the past 15 years. By contrast, small- and mid-caps trade at a historically reasonable 16x P/E and are characterized as attractive. The piece is a valuation warning rather than a catalyst-driven market event.