It’s now been a couple of weeks (and almost 1,000 points on the Dow) since I wrote “Cheapest Stock Market in Decades.” Obviously, stocks are even cheaper today.
I found a few more charts that show how rare the current valuation situation really is. Below is a chart from JP Morgan (HT, Dave) that shows the price-to-book value of the S&P 500. By this measure, stocks haven’t been this cheap in over 20 years.
This next chart (HT, Barry) shows that this is only the third time in history stocks have made a new 12-year low. The last occurrence marked THE low of the epic 1973-74 bear market.
This last chart is an update of one I posted a couple of weeks ago. As of yesterday’s close stocks are cheaper than any time since 1983, just after the birth of the last major bull market.
Weekly Market Recap
JP Morgan Asset Management
February 23, 2009
Twelve Year Lows?
The Big Picture
March 4th, 2009
Online Data Robert Shiller