Tag Archives: market overvalued

Bulls Beware

I have been working daily on designing and backtesting various option strategies, which will continue to be my focus for the foreseeable future. As a result, the time available for writing new posts has been and will continue to be … Continue reading

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Posted in Earnings, Economic Indicators, Fundamental Analysis, Market Commentary, Market Timing, Recession Forecasting Model, Relative Strength, Risk Management | Tagged , , , | Leave a comment

S&P 500 Overvalued Based on Price to Sales Ratio

In a recent article “Earnings-Price Divergence Always Followed by Negative Returns,” I noted that every extreme divergence (-20% or lower) between year-over-year corporate profits and equity prices in the past 50 plus years was followed by negative year-over-year equity returns.  … Continue reading

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Posted in Economic Indicators, Fundamental Analysis, Market Commentary | Tagged , , , , , | 1 Comment