Valuation Update: Stocks are (Still) Expensive Everywhere

Given the non-correction-correction that took place in October it should be no surprise that valuations didn't exactly correct either. Indeed as we look across countries and sectors it is clear that the valuation level of the median stock is still near the cycle high, which in many cases is higher than the valuation high in 2007-2008. Below we show the price to cash flow ratio to illustrate the valuation extension, but any ratio would do.