Risky Levels Loom as Stocks Are Overvalued, Overbought
NEW YORK ( TheStreet) -- My major theme for the teenage years of the new millennium is that U.S. stocks are a risky asset class beginning in 2013. When I presented this theme as the year began, I also explained that there was upside first to my longer term risky levels.
On Jan. 2 I wrote,
On Jan. 4 I presented my
On Jan. 25 I explained why the
Since ValuEngine data comes from industry sources, why do most strategists both on the buy side and sell side say that the stock market is cheap? While price-to-earnings ratios may be below ranges of previous market tops for the S&P 500, we have measures by sectors that are based upon data for more than 7,000 companies. For example, the trailing 12 months P/E are 38.8 for the computer and technology sector and 49.7 for the construction sector. At the opposite end of the spectrum the auto-tires-trucks sector has a P/E of 15.7.
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