Take example of country like India, it's widely considered over-valued (based on PE).
Due to growing incomes & financial knowledge, the market participation is expected to increase exponentially. More people seem to be investing in stock market than the traditional options like Gold & real estate. (I think similar shift should have taken in countries like China, but I didn't find much info about it online) If the company earnings do not keep up with the stock demand, it will lead to even higher PE. Will all this lead to a bubble ?
Submitted April 27, 2024 at 01:36AM by UnicornWithTits https://ift.tt/MNpk1w8
