The economy is expanding, companies are handing out bonuses, tax rates are plunging and corporate earnings are rising.
So why are investors so jittery?
A big reason is that stocks are too expensive, says Jack Ablin, chief investment officer of Cresset Wealth Advisors. And Tuesday's gains notwithstanding, he suspects investors are finally coming to grips with this.
For five years now, stocks have risen in value twice as fast as earnings, according to a report by Ablin. Other studies based off a popular valuation measure championed by Nobel Prize economist Robert Shiller have noted stocks relative to long-term earnings haven't been this expensive since the dot-com...