S&P Overvalued; Emerging Markets Weaken. What To Do…

There are many reasons to expect the current cyclical bull market in stocks to give way to the next vicious bear. Let me give you my top six. First of all … The Market Is Way Overvalued As I’ve written before, all traditional fundamental valuation measures like price/earnings ratios, dividend yields and Tobin’s Q ratio unambiguously come to this conclusion. Then last week Jeremy Grantham, the famous value investor, published a missive stating that according to his methodology the S&P 500 is 45 percent overvalued. He calculates fair value at 920. I want to add that secular bear markets — like the one that started in 2000 — do not end at fair . . . → Read More: S&P Overvalued; Emerging Markets Weaken. What To Do…