The US market is expensive, but is it in bubble territory

The US market is expensive, but is it in bubble territory? The S&P 500's string of new highs has triggered a debate about whether the market is too expensive. Current consensus earnings per share for 2014 for the S&P 500 is about $119, but we expect expectations to wind down to between $116 to $117 as we progress through the year. That gives a current PE ratio of 16.5 times, which appears high. Some commentators are suggesting the US market is entering bubble territory. We believe it doesn't qualify as a bubble; particularly when compared with the likes of internet bubble of 2000. Bubbles aren't 10 per cent expensive; bubbles are 30 to 40 to 50 per cent expensive. Read the full report: (VIEW LINK)