I am starting to sound like a broken record, but market valuations are still very elevated:
| Z Option Market Valuations: | Current | Mean | % Overvalued |
| Shiller’s 10 Year PE Ratio: | 25.54 | 16.65 | 53.39% |
| Trailing 12 Month PE Ratio: | 22.29 | 15.58 | 43.07% |
| Tobin’s Q Ratio: | 0.95 | 0.68 | 39.71% |
| Market Cap to GDP: | 115.2 | 90.00 | 28.00% |
| Price to Sales: | 1.77 | 1.41 | 25.53% |
| Average: | 37.94% |
On Friday, I allowed my Merck puts to expire – $1,200.00 profit. I am not initiating any new positions until we have a meaningful correction. In the meantime, I am continuing to research possible candidates.
Here are this week’s results from my Stocks to Own Screen:
| Ticker | Price | Fair Value | Margin of Safety | Yield % |
| AMGN | $144.72 | $194.00 | $49.28 | 2.3% |
| WMT | $67.29 | $75.00 | $7.71 | 2.9% |
| MMP | $68.59 | $76.00 | $7.41 | 4.4% |
Results are based on the following screen:
- Low fair value uncertainty.
- Wide moat.
- Morningstar rating 4 or more stars.
- Financial Health Grade >= B.
- Current P/E <= 20.
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