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S&P 500 valuations appear high but adjusted metrics and economic context suggest no bubble now.

Market News
16 May 2026
Seeking Alpha
View Source
Bullish
pluang ai news

The S&P 500's traditional price-to-earnings (P/E) ratio seems expensive at around 29x, but when adjusted for factors like stock-based compensation, R&D capitalization, and intangible amortization, the P/E falls to about 22–23x. This level is above average but not as extreme as during the dotcom bubble. Additionally, shifts in monetary policy and currency value have inflated asset prices structurally, making historical comparisons misleading. The author maintains a long-term bullish stance on US equities, viewing market corrections as buying opportunities rather than signs of a systemic bubble.

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