Nearly a year ago I wrote an article (Over-Valued Market: Four Critical Indicators) on the over-bought conditions of the market. Yet here we are today facing an even higher market. Here is current data on the four indicators discussed on the “Over-Valued Market…” article. Click on the above article and check the values for yourself. Keep in mind the values constantly change so the information below is a snapshot.
- Shiller CAPE Ratio: Old value = 25.56 and new value = 29.11.
- Q-Ratio: Old value = 0.95 and new value = 1.02.
- Market Capitalization vs. GNP: Old value = 115.2 and new value = 122.5.
- Price Regression to S&P 500 Trend: Continues to increase and is at an all-time high.
What brought this March 2016 article to mind is the Seeking Alpha link I posted in the Forum this morning.