I am on a stock picking strike until we have a meaningful pullback. I would not put money to work at these levels – all risk, no reward.
Even if you ignore the idiot we elected President:
- Business Insider – ‘Just asking!’: Trump goes on another early morning tweetstorm about Hillary Clinton and Russia
- LA Times – Part I – Our Dishonest President
- Bloomberg – Trump Really Might Be Scaring Away Tourists
https://www.youtube.com/watch?v=TMfu3aaxE68
Valuations alone tell you returns from these levels are going to suck:
| Market Valuations: | Current | Mean | Delta |
| Shiller’s 10 Year PE Ratio: | 29.02 | 16.74 | 73.36% |
| Trailing 12 Month PE Ratio: | 26.52 | 15.65 | 69.46% |
| Tobin’s Q Ratio: | 1.09 | 0.68 | 60.29% |
| Market Cap to GDP: | 130.6 | 90.00 | 45.11% |
| Morningstar’s Fair Value: | 1.04 | 0.90 | 16.20% |
| Price to Sales: | 2.08 | 1.44 | 44.44% |
| Average Overvaluation: | 51.48% |
Click on the links to research further.
This headlines should tell you everything you need to know about the sanity of the Stock Market right now:
- Bloomberg – Tesla’s Market Cap Surges Past Ford and Musk Trolls Shorts After Tesla’s Market Cap Climbs to a Record
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