No stock picks today – Market just keeps going up, totally ignoring fundamentals – I have already reached my 2016 goals, and it is only August! So just how overvalued is the market at this point, let’s get an update:
| Market Valuations: | Current | Mean | Delta |
| Shiller’s 10 Year PE Ratio: | 27.08 | 16.68 | 62.35% |
| Trailing 12 Month PE Ratio: | 25.27 | 15.60 | 61.99% |
| Tobin’s Q Ratio: | 1.04 | 0.68 | 52.94% |
| Market Cap to GDP: | 122.7 | 90.00 | 36.33% |
| Morningstar’s Fair Value: | 1.03 | 0.90 | 15.08% |
| Price to Sales: | 1.94 | 1.43 | 35.66% |
| Average Overvaluation: | 44.06% |
We are at serious nose bleed valuation levels – but that does not mean anything in the short term – need to continue practicing patience.
Really enjoyed this short film on YouTube – will put a smile on your face for the rest of the day:
https://www.youtube.com/watch?v=TeVLxcekEsw
Made me double check my license to make sure I have the Organ Donor notation.
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