Tom Essaye Quoted in Yahoo Finance
The market is richly valued trading at a high multiple
Why the stock market could easily get spooked
“The market is richly valued trading at a high multiple that presents a major risk if lofty earnings expectations fail to be delivered,” Sevens Report Research founder Tom Essaye said.
To Essaye’s point, the forward price-to-earnings ratio (PE) for the S&P 500 (^GSPC) is 22 times — well above the 10-year average of 18.7 times. Stocks are almost as richly valued as when they hit a peak in early January 2022. What followed was the start of a nine-month bear market — the benchmark index plunged about 19%.
Also, click here to view the full article published in Yahoo Finance on January 9th, 2026. However, to see the Sevens Report’s full comments on the current market environment sign up here.
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