The full view

How does the US equity market look in terms of valuation compared with the peak of the Internet bubble in 2000? As each individual valuation measure has its weaknesses, this table compares 20 different metrics and therefore provides a more robust overall picture.

Before jumping to conclusions, it is important to stress again that valuation, on its own, is not a reliable timing tool for investors. That said, the message is clear: markets are far from cheap, and the S&P 500 is currently more expensive than in 2000 on 9 out of the 20 measures tracked in this table.

In that context, it is more important than ever to move away from the trodden path of pure index investing and to remain disciplined, in order not to be caught in potential pockets of excess.