S&P 500 P/E ratio as of today is 30.59. As far as I can see, it has only been this high four times before and, every time following it, a bear market came.
I read various opinions on this and some people think those days are different and P/E ratios are at a new higher average nowadays.
I have 120k in cash available and looking to invest. It’s quite a big sum of money for us. I’m too nervous to invest it as a lump sum and plan to DCA over 10 months or so. My planned portfolio is 85% All World ETF(large and mid) and 15% small cap world. This would still leave me with 50ish percent exposure to US large caps.
I’m looking to stay in the market for at least 20 years. Still, if the S&P 500 does a dot-com bubble style bust, it will make a considerable difference to my long term return.
I’m also not convinced I should invest all my money in non-US stocks.
Tell me why/if I shouldn’t invest most of my money in a HYSA (still 2% above inflation in the UK) and wait for the dip. Surely, statistically speaking, it should drop to below 6000(inflation adjusted) at some point in the next 5 years?