Sunday, January 01, 2017 9:23:39 PM
1/1/17 SP 500 PRICE VS EARNINGS
CONCLUSION: The market exceeded the normal overvalued level (red line) a year ago and widened the gap until 2016 Q3 earnings made a clear turn upward. That is a positive development, because, at least, earnings and price are moving in the same direction; however, we still need to be concerned that extreme overvalue conditions weaken the fundamental foundation of the market.
CONCLUSION: The market exceeded the normal overvalued level (red line) a year ago and widened the gap until 2016 Q3 earnings made a clear turn upward. That is a positive development, because, at least, earnings and price are moving in the same direction; however, we still need to be concerned that extreme overvalue conditions weaken the fundamental foundation of the market.
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