I’m referring to a valuation gauge known as the price-to-book ratio.
As you might recall from my previous reviews of the eight valuation indicators with the best long-term records, the S&P 500’s SPX price-to-book ratio currently is higher — and therefore more bearish — than at almost any other time in recent decades.
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Don't worry about what is technically 'overvalued', that means nothing at all. Worry about how people are feeling about what they own - and where they think what they own is going from here. That's all that really ever matters. Forget the rules, worry about what people believe.