(FORBES) A Correction In Equity Valuations Does Not Have To Be Painful

The calls for a correction in US stock valuations seem to grow louder by the day. Many bears point to the historically elevated price-to-earnings ratio of the S&P 500 to jump to the conclusion that stock prices must go down, and investors should brace for negative future returns for the broad equity market. Fortunately, the high valuation can correct without the need for a sudden drop in the market.

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