Mike "Mish" Shedlock writes,
According to a risk gauge created by BlackRock, the world’s largest asset manager, investors have hit a new high in terms of their comfort level with the earnings power and valuation of the S&P 500.
The risk gauge takes into account three factors:
1. Enterprise value: Market cap plus debt minus cash
2. EBITDA: Earnings before interest, taxes, depreciation and amortization
3. VIX: Estimated future volatility using S&P 500 options
Read the article here.
