While CNBC and other perma-bulls claim that the stock market is a great investment today, the smart money is already prepping for a disaster. Goldman Sachs has told its clients to “sell at the new high.” Credit Suisse just told its clients stocks “haven’t looked this worrisome since the tech bubble.” They’re correct. Stocks are in a bubble by virtually every reasonable metric.
The comments above and below are excerpts from an article by Graham Summers (gainspainscapital.com) which has been edited ([ ]) and abridged (…) to provide a faster and easier read.
According to CAPE, stocks have only been more expensive relative to earnings TWICE in history. Both of those situations were also massive bubbles.
The media Price to Sales (P/S) ratio for the S&P500 is at an all-time high. Stocks have NEVER been more expensive based on this metric.
h/t Ned Davis
And finally, stocks as priced in Enterprise Value to Earnings Before Interest Taxes Depreciation and Amortization (EV/EBITDA) are at levels not seen since 2000.
H/T the Euchre
A crash is coming and the time to prepare is NOW, before it hits.
Disclosure: The above article has been edited ([ ]) and abridged (…) by the editorial team at munKNEE.com (Your Key to Making Money!) to provide a fast and easy read.
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