PMI numbers suggest correction in the U.S. stock market

We just got new PMI numbers for the U.S. and it isn't pretty. We dropped from 54 to 51. That also means that GDP will likely not grow. And that also means that the U.S. stock market is in for a correction.

Chart 1: PMI Vs. GDP

Because the Warren Buffett rule is, the stock market can't go much higher than the GNP. GNP is at 16.1 trillion, the total stock market index is at 16.3 trillion. This means: overvalued.

I say get out of U.S. stocks.