Sector ETFs to Buy in a Lofty Market

The stock market may be overvalued based on price-earnings (P/E) ratios despite the recent correction sending many portfolios into the red. According to YCharts , the S&P 500’s cyclically adjusted price-earnings ratio stands at 24.34x, which is significantly greater than its long-term average of 16.63x (since January 1881). The ratio is approaching the levels seen leading up to the great depression and in the 1970s, although it remains below the 2000 dot-com bubble levels.