Market Valuation Monitor

Stock market sentiment indicators

Read as contrarian signals: the VIX fear index, consumer sentiment, credit spreads and economic policy uncertainty. Widespread optimism is shown as a warning, widespread pessimism as a potential opportunity.

Composite valuation

Composite since 1962, monthly

Composite (σ)±1σ / ±2σ bands
Month-end readings; last point updates with each trading day

Where every model stands

Expected returns

Expected real S&P 500 return per year, dividends included, implied by today's composite reading. Pick a horizon.

Composite vs return over the next 10 years

Weights and each model's correlation with future returns
How the weights were chosen, and the caveats