A Most Bullish Chart

Bill Nasgovitz shows a chart of the ten year rolling returns of the stock market in this video. He is definitely correct in that it is a very bullish-looking chart and that the next ten years will most likely be better than the last ten years.

However, I am sure that there are different charts out there that show we have not yet hit the point where we have the true beginning of a new bull market. For example, Vitaliy Katsenelson has a chart showing the 10 year trailing P/E ratio of the S&P 500 on slide 18 of this presentation (click image below for larger size):

kastenelson-pe-chart

Katsenelson says the market is now trading at an average valuation, not a below-average valuation, which he argues is the point at which a new bull market begins.

My own personal opinion is that this market is fairly valued or maybe even slightly overvalued.

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