zerohedge.com / by Tyler Durden / Feb 19, 2017 6:48 PM
Carbon-based traders of a certain vintage – which excludes today’s 20-year-old hedge fund managers – may recall a time when a 15x P/E was considered “fair.” Not any more. In fact, according to a new analysis by Barclays’ equity strategist Keith Parker, which tries to factor in so-called “animal spirits” as a driver of valuation has found that 20x P/E is perfectly normal and fair for the current market, further demonstrating just how deep into the goalseeking rabbit hole US capital markets have fallen.
First, to prove we are not joking, here is Barclays explaining why it is important to quantify animal spirits as a input factor of “permanently high plateaued” P/E multiples:
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