FYI Three years of virtually uninterrupted gains for the U.S. gauge have resulted in 77 record closes since 2012 and a valuation quirk that some see as a sign of indiscriminate buying. A measure of how much price-earnings ratios among the 50 biggest companies vary has fallen to almost the lowest on record, data compiled by Bloomberg show.
Gaps between stocks shrunk after investors shifted money out of higher-valued technology and Internet companies and bought defensive industries such as consumer staples and utilities. Such rotations, which can be done with a click of a button using exchange-traded funds, show buyers are making too few distinctions among good and bad companies and could exacerbate selling once it begins, said Eric Schoenstein, co-manager of the $5.2 billion Jensen Quality Growth Fund. :
Regards,
Ted
http://www.bloomberg.com/news/print/2014-09-01/identity-crisis-in-s-p-500-as-range-of-valuations-narrows.html
