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  1. Default Are stocks overpriced?

    I have heard that many feel the DOW as well as the rest of the market is currently overpriced corresponding to the economy. I have mixed feelings right now, what do you guys think?

  2. Default

    I do think the market is overpriced or overbought. On a valuation basis P/E Ratios are higher then historical averages and we have seen a broad based 50%+ rally since the March bottom. I do think we will trend higher, but i am cautiously investing in my long positions with stops in place. Using the RSI as an overbought and oversold indicator for stock is surely a helpful way to see if a position you are looking at is overbought or oversold if the RSI is above 70 you may want to consider taking profit or waiting for a pullback to initiate a new position. Also the direction in which the RSI is trending is important as well as how the RSI has effected the stock price. This is one of few technical indicator i use. Also as i said P/E ratios are important fundemtal indicator that IMO also can determine the short term trajectory of an equity, i usually evalute a companies P/E ratio in relation to its peers and as a general rule be careful of companies with P/E ratio above 20. Any company without a P/E ratio is losing money so know that the investment is speculate and see if they have been decreasing their losses over the last 4 quarter before inveting. Just some ideas and thoughts.

  3. Default

    It's hard to tell since the dollar has lost so much value, stocks will have to be priced higher even if the company isn't doing any better. This rally will continue, but there will prolly be small pullbacks. I'm just waiting for a sign to tell me it's time to short the market like crazy. Maybe when the fed starts raising interest rates.

  4. Default

    IMO opinion they wont be raising interest rates any time soon not for at least 12-16 more months.

 

 

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