Loading ...Is the S&P overvalued?
Well this makes a good case. This graph represents the hours the average worker has to work in order to buy a notional share of the S&P 500. Looks like a top to me, but I am sure it could go higher into 2018 after an autumn pullback.
Yes, and timing wise it looks like the S&P is on borrowed time.
Yes an autumn pullback in on the cards but will the dip be bought again. I think if we see a 10% fall then it will and that might mean miners and the SM going up together?
My focus will be the volatility trade…Not for the faint of heart; if one has the temperament, this trade can be very profitable…
Yes that will be a big money maker if you can get the swings right ES. Made a bit a month ago on UVXY but missed the last big 30% rise.
By most measures, the Venezuelan IBC index has appeared overvalued for many years.
“In recent years the IBC has undergone a dramatic appreciation of a 17,843%, from 81.3 points to 14,588 points today.”
Same with the German stock exchange index in 1922-23.
http://www.businessinsider.com/heres-what-happened-to-stocks-during-the-german-hyperinflation-2011-11
But in neither case were these indexes particularly overvalued. It was the currency that was really been overvalued on a forward looking basis.
At some point, that will apply here too.
Yes good point Pedro. I guess we will be off to 3000 in 2018! Hopefully the miners will follow 🙂
Overvalued?…. Yes beyond anything we can imagine