From BlackRock: Equity valuations may look rich compared with history, but we do not believe this is something to be feared. Kate Moore explains.
Many investors are skeptical about equity valuations after an eight-year rally. Investor trepidation is understandable. The cyclically adjusted price-to-earnings (P/E) ratio for U.S. stocks was at its highest level since March 2002 as of end-July according to Thomson Reuters data, a level last associated with a major market correction.