By that metric, the market as a whole had been unusually expensive for much of the past two years, a period when especially easy monetary policy turbocharged the popular view that low interest rates gave investors few alternatives to stocks. Worries about inflation and the path of the Federal Reserve’s interest rate increases have spurred the recent turmoil in markets and provoked vigorous debate over the appropriate valuations for stocks in today’s environment. The S&P 500’s decline through Friday is its worst year-to-date performance since 1970, according to Dow Jones Market Data.

Read More