The number of warnings about overvalued markets seems to be quickly ratcheting upward and no wonder.
Stocks in the U.S. closed their best August since 2000, with the S&P 500 up 3.77% for the month. And with a 1.92% return for the TSX during that time, the rally has left equity valuations on both sides of the border sitting at multi-year highs.
The S&P 500 currently has a price-earnings ratio of 18.04, while the S&P/TSX Composite Index is at an even pricier 20.05, both higher than the long-term average for their respective indexes.