Stocks are in a risk-off mood six trading days into the New Year for a multitude of reasons, prompting one veteran strategist to issue a blunt warning to over-enthused investors. “We have never seen equities priced quite this high. The adjusted price to earnings ratio is pushing up against 40 times. The last time we saw that was in 1999. But if you look at price to sales ratios, that’s over three times — that’s higher than what we saw in the dot com bubble,” said Tematica Research chief… Source link
Read More »This part of the stock market is massively under-performing and it should be a ref flag to investors
While the S&P 500 and Dow Jones Industrial Average have continued to power to new highs seemingly everyday this summer, the small-cap Russell 2000 Index has been OK with sitting the dance out completely. After peaking in March, strategists at Renaissance Macro Research note the Russell 2000 Index is now at new year-to-date relative lows versus the S&P 500. Over the last six months, the Russell 2000 Index — which houses smaller U.S. focused companies — is up a mere 1.9%. The S&P 500 and… Source link
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