Stocks Are Still Very Overvalued – Here’s How to Profit Anyway

There are times when avoiding losses is far more important than looking for gains. As the debate continues between what the Federal Reserve says it will do and what the market thinks the Federal Reserve will do, there is one inescapable conclusion we must consider: no matter how you look at the world, and regardless of your expectations for […] February 08, 2023 [Option Sensei] [Stocks Are Still Very Overvalued – Here’s How to Profit Anyway]( There are times when avoiding losses is far more important than looking for gains. As the debate continues between what the Federal Reserve says it will do and what the market thinks the Federal Reserve will do, there is one inescapable conclusion we must consider: no matter how you look at the world, and regardless of your expectations for the economy and the Fed, stocks are not cheap at current levels. Let’s look at the numbers, and where to find the real bargains… According to the latest issue of Barron’s current issue, the price-to-earnings ratio (P/E) of the S&P 500 is 22. Noted economist Ed Yardeni uses the old-fashioned rule of 20 to reverse-engineer a projected price-to-earnings ratio of just 13.5 based on current conditions. The Rule states that the result of the market PE + CPI growth rate must be under 20 for stocks to be undervalued. Currently, the rule of 20 calculation is 28.76. Multiplying 13.5 times the most optimistic forecast for 2023 earnings gives us an index target of just 3,307. My own valuation analysis gives me a fair value for the S&P 500 of around… Continue reading at [INVESTORSALLEY.com]( SPONSOR [How The Ultra Rich Pick Their Stocks]( There's one tool that can scan and pick the best stocks... and could give you all the consistency you need in your trading... No matter what happens in the market. Our Pro Trader will unveil the process used every day to select trades, improve entries and exits, and find better trades than ever before. [Click here to Save Your Spot in our Free Live Training.]( Copyright © 2023 Wealthpop | All rights reserved. Magnifi Communities, 1 Penn Plaza, Suite 3910, New York, NY 10119 [Contact]( / [Terms & Conditions]( [Click here to unsubscribe](