Compare the fwd PE of "defensives" today vs. 1999. Doesn't look like exuberance. pic.twitter.com/W3Q5ZOxWB0
— Joe Weisenthal (@TheStalwart) August 14, 2016
Low interest rates and the accompanying search for yield have driven the forward Price-Earnings ratio for Defensives to a 20-year high. This is likely to reverse when (not if) rates eventually rise. Cyclicals and Growth, however, still look reasonable.