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What does the stock market's valuation tells us about what happens next? 'ZERO'
Morgan Stanley's US equity strategy team published a note Monday titled "We Are Full of Bull." In it, strategist Adam Parker identifies a multitude of reasons to be bullish. However, many of the more bearish folk continue to point to the S&P 500's price-to-forward-earnings ratio (P/E), which at 17x is not reflective of a cheap market. Parker actually believes the stock market could surge thanks to a P/E that could expand to 20x before this bull market peaks. The bottom line for Parker, however, is that people shouldn't be obsessing over P/Es in the near term. "[K]nowing that we are one standard deviation above the ... (full story)