Are U.S. stock prices overvalued? U.S. stock valuations are nearing historical highs, but some investors are wondering whether this bull market could become a bubble. More importantly, they’re wondering what to do if that’s the case.

This presentation examines U.S. stock prices from an over-/under-valuation perspective using Vanguard’s fair-value cyclically adjusted price earnings (CAPE) approach that was recently published in the Journal of Portfolio Management.*

The presentation will highlight:

• Why comparison against long-term average valuations paints an incomplete picture regarding U.S. stocks.
• A better valuation metric benchmark and Vanguard’s model that improves stock return forecasts recently published in the Journal of Portfolio Management.*
• Vanguard’s market outlook, including for U.S. stocks.
• Actionable insights on how to respond to elevated stock prices.

SPEAKER

Harshdeep Ahluwalia