This week is on valuations. Yes, the S&P 500 is trading above its 90th percentile in terms of historical valuations (data back to the 30s). But the headline valuation is skewed by the valuations and weights of the mega cap tech names. About 1/3 of the index members are actually trading below their 10 year historic valuations. The market is still expensive, just not as extreme as the headline number implies.