– Fed Warns Equity Valuations “Appear Stretched”, P/E Ratios Are “Somewhat Elevated” (ZeroHedge, Feb 24, 2015):
Confirming last year’s warning, The Fed’s Monetary Policy Report has sent a broad message to the markets in what may be Yellen’s Irrational Exuberance 2.0 moment: “Overall equity valuations by some conventional measures are somewhat higher than their historical average levels, and valuation metrics in some sectors continue to appear stretched relative to historical norms… price-to-earnings and price-to-sales ratios are somewhat elevated, suggesting some valuation pressures… with heightened leverage that is close to levels preceding the financial crisis.”
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