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The market is broken because they pumped more liquidity into the system than possible for it to absorb. The reason P/E is a broken indicator is because companies perform stock buybacks to artificially increase short term performance to appease investors. Value investing unfortunately does not work in the current market since we are in state like before The Great Depression, Roaring 20s (Part 2). People are hyping up stocks like Tesla to gamble, and speculate, the market is irrational. But this is seen across various assets. Most stocks like Nvidia, etc. are slightly overvalued, so is Bitcoin, etc. Very few assets are fairly priced, and even less are undervalued. The market will never be truly rational as humans ourselves are not truly rational. image
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