3 Valuation Metrics Investors Should Consider Before Buying S&P 500 Stocks at All-Time Highs

At the time of this writing, the S&P 500 (SNPINDEX: ^GSPC) is less than 1% off its all-time high and up 73% since the start of 2023. Artificial intelligence (AI) and investor appetite for risk have contributed to the torrid gains, making the market relatively expensive.You may have seen headlines saying that the S&P 500 is overvalued compared to its historical averages. Or that red-hot growth stocks have run up too fast. But that doesn't tell the full story.Three simple valuation metrics -- earnings, trailing price-to-earnings ratio, and forward price-to-earnings ratio -- explain what's going on with the market's valuation. Here's why they matter, why the S&P 500 isn't as expensive as it seems, and what that means for your investment portfolio.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool