The Financial Post reports in its Saturday edition the screeching about overvalued markets is getting louder. The Post's John Shmuel writes stocks in the United States closed their best August since 2000, with the S&P 500 up 3.77 per cent for the month. With a 1.92-per-cent return for the Toronto Stock Exchange's main index during that time, the rally has left equity valuations on both sides of the border at multiyear highs. The S&P 500 has a price-earnings ratio of 18.04, while the S&P/TSX composite index is at an even pricier 20.05, both higher than the long-term average for their respective indexes. Still, fund managers say they are still finding plenty of good deals and valuations are reasonable. "When the headlines are negative and everyone's contemplating a correction, you're probably not getting a correction," said Murray Leith at Odlum Brown. Corporate earnings are at record levels and this will not slow down soon. "People need to remember the market is forward looking, so they need to stop looking backward to the cheap multiples we saw in previous years and look forward to the fact that earnings are going to grow in 2015 and 2016," said Barry Schwartz at Baskin Financial Services.