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This edition of Market Factors starts by acknowledging that the current market is more expensive than in 1999 or 1929 and explains what this implies for investor portfolios. Part two covers an explanation for market calm amid a U.S. political circus and the diversion looks at early signs Ai is cutting into hiring.

Market more expensive than ever before

A blended benchmark of trailing and forward PE ratios, the cyclically-adjusted PE ratio, EV/EBITDA, Tobin’s Q , and market cap to GDP identifies the current market as the most expensive in U.S. history according to Bloomberg’s Simon White. More expensive than the tech bubble peak, more expensive than 1929. (The relevant chart is posted on social media here ).

The question as to what investors should do about this is more c

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