Sunday , 19 November 2017


Latest Stock Valuation Table Says What About U.S. Market Levels?

America’s GNP numbers came out this week for the first quarter of 2013 and thereinvesting-0 was 1.8% growth yoy to $16.236 trillion…What does this mean to your equity positioning?

So writes Katchum (http://katchum.blogspot.ca) in edited excerpts from his latest post* entitled What do the latest GDP numbers tell us?. 

[The following article is presented by  Lorimer Wilson, editor of www.FinancialArticleSummariesToday.com and www.munKNEE.com and may have been edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. This paragraph must be included in any article re-posting to avoid copyright infringement.]

Katchum goes on to say in further edited excerpts:

The following table is used to give a valuation on the stock market and gives you the tool to position yourself. It is based on the Dow Jones U.S. Total Stock Market Index (DWCF) divided by the latest GNP.

The latest Dow Jones U.S. Total Stock Market Index [go here for the latest] is 17,015 which, divided by the latest GNP of $16.236 trillion [see Table 9 here], is 1.05 and, according to the Stock Valuation Table below, 105% makes the stock market modestly overvalued.

I wouldn’t buy equities at this stage.

[Editor’s Note: The author’s views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.]

*http://katchum.blogspot.ca/2013/06/what-do-latest-gdp-numbers-tell-us.html (Written by Albert Sung; Copyright © 1999 – 2013 Google; Subscribe to Katchum’s
macro-economic blog; Sung is also an accomplished pianist and composer. Visit Katchum’s Compositions here)

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