Really simply question that has nothing to do with us entering a recession, more so trying to understand fundamentals.
I hear people discuss the s&p p/e historical average of 15 or so and state we are overvalued since we've hovered in the 20's for quite some time. My question boils down to why people compare PE today with historical PE ratios when the composition of the s&p has shifted so greatly towards higher PE companies?
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