Hi Elliott Waver, When the S&P topped back in March 2000, we remarked that stock valuations had drifted all the way out to Pluto. Now, at the end of October 2025, valuations have blown well past those prior extremes. Read Bob Prechter’s commentary from the just-released November Elliott Wave Theorist: |
For my speech at the New Orleans Investment Conference, I updated our Pluto chart through October 2025. We could just as well call it the Mass Delusion chart. At the end of last month, investors were paying 7.85 times the book value of S&P 400 Industrial companies, and they were content with a measly 1.16% annual dividend yield from companies in the S&P 500 Composite index. T-bills pay more than triple that amount. Clearly, there is no income reason to buy stocks; the only reason to buy them is a belief that other investors will bid prices even higher than they already are. Figure 5 is a snapshot of today’s unprecedented degree of financial optimism. |
