Wartime vs Peacetime Markets

Level 5 - Sonic Autist

Welcome Avatar! The last two years have represented the craziest speculative mania we have seen in our lifetimes.

Below you can see the historical P/E ratios for tech, media and telecom (“TMT”) companies in the S&P 500.

Source: Bloomberg Intelligence

TMT P/E ratios increased up to 45% following the March 2020 crash to a high of ~26x. In recent months, valu…