Don't use P/E as an estimate of a bubble... profits often mean revert.
Use something closer to market value to GDP (with some adjustments). That is a much better estimate. John Hussman has imo the best of such metrics. Here's his thoughts from August: https://www.hussmanfunds.com/comment/mc250814/
Yes. A lot now depends on when "growth" stops. But GDP is very hard to grow at an sustained high rate justifying higher valuations. Even through industrial revolutions, assembly lines, transistors, and the internet.
Use something closer to market value to GDP (with some adjustments). That is a much better estimate. John Hussman has imo the best of such metrics. Here's his thoughts from August: https://www.hussmanfunds.com/comment/mc250814/
And this image says a lot: https://www.hussmanfunds.com/wp-content/uploads/comment/mc25...
Yes. A lot now depends on when "growth" stops. But GDP is very hard to grow at an sustained high rate justifying higher valuations. Even through industrial revolutions, assembly lines, transistors, and the internet.