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U.S. stocks are trading at close to 26 times CAPE earnings, far above the 16 or so that has been the historical norm.
U.S. stocks are trading at close to 26 times CAPE earnings, far above the 16 or so that has been the historical norm.
(Richard Drew/AP)

Finding winners in a market priced for perfection

Remember when investors used to worry about volatility? Now the problem is precisely the opposite.

All across the developed world, from commodities to stocks, normally twitchy market watchers have fallen into a deep, relaxed slumber. The VIX, the traditional “fear gauge” for the stock market, hovers near record lows. The Citigroup economic surprise index, which measures how economic data match up to expectations, is similarly soporific. Even oil prices, usually good candidates for flighty behaviour, are remarkably placid.