vrijdag 20 december 2013

Stock Market Just Became Significantly Overvalued

According to the stock valuation chart, the stock market is now crossing the 115% ratio of total market cap against GNP. Which means we are crossing the border from modestly overvalued into significantly overvalued territory.

If global GDP weakens next year, a drop in the stock market will not be far off.


Stock Valuation Table

In fact, Marc Faber forecasts that the global economy will weaken next year.


And this is also confirmed by the declining GDP growth estimates.
GDP Estimates

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