How To Tell When The Stock Market Is Overvalued
In this video we go over 4 key methods to tell when the stock market is overvalued. The Market P/E, the Shiller P/E, The Buffett Indicator & Overall Market Returns.
www.multpl.com/s-p-500-pe-ratio
www.multpl.com/shiller-pe
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One of the most asked questions that investors are curious about, is how do you tell whether the stock market is overvalued? Are prices too high, should we wait for the market to go down, or is now actually a fine time to get in?
And this is an important question to ask, because let’s be honest no one likes putting there money in the stock market and then seeing prices fall. It’s not a fun experience, I’ve certainly gone through it before.
But there are a number of indicators that we can look at in order to determine if the market is overvalued. Or at the very least get a good feel for where market valuations stand.
In this video we’re going to explain the 4 key indicators that we can use to determine whether a market is overvalued, fair valued or underpriced… I’m going to use todays USA market as an example but you can use market at any time with these indicators…
Method 1: The Market P/E Ratio
Now I’m sure you’ve heard of this metric before, the p/e ratio. Or price to earnings ratio. I don’t know if you’re aware of this but you can actually get the p/e ratio of the entire market as a whole. And you can use this to get a feel for if things are overvalued. Let me explain...
So the market p/e ratio, what you first need, is a guage of the entire market.
Now in the USA, they have an index called the S & P 500.
The S & P 500 measures the performance of 500 very large and popular companies in the States. Essentially this index tracks the entire USA market, it’s known as a benchmark for the market as a whole.
So what we do is get the price of the index aka how much do stocks overall cost, and then you compare this to the earnings. Aka how much money are the stocks bringing in. In terms of profit of course.
So cost versus profit it’s the oldest benchmark figure in the book.
And the P/E is simple to find. All we do is a good old google search. And we go on the website multipl.com which shows us this graph.
Now as you can see, the current S & P 500 p/e ratio is 32.95. If you take that and look through history, you can see that it’s quite a bit higher than it’s normal figure. The average p/e ratio throughout history is 15.85. Right now it’s double that, which isn’t a good sign.
I mean the p/e ratio is similar to what it was back in 1999. Where the dot com crash was just about to happen. In 1999 the market p/e was 32.9. This potentially means the current market may be overvalued… But we have to look at the other indicators in order to confirm this hypothesis…
Method 2: Shiller P/E Ratio.
Now there’s investors who’ve come along and criticized the traditional p/e ratio for measuring the market. They say earnings in a particular year can fluctuate because of business cycles and thus it’s not accurate. That’s where Professor Robert Shiller came along and he developed something called the Shiller P/E ratio.
What he did was he averaged the earnings over the past 10 years and adjusted them for inflation so that market fluctuations would not be in the equation.
And thus a lot of investors believe it’s a more accurate way of measuring the market.
Anyway so currently the Shiller p/e ratio sits at 30.27. That’s a lot higher than what it normally is if you look back through history. The average Shiller p/e throughout history, the past 100 years or so is 16.75. So it’s about 14 points higher than the average at the current point in time of making this video.
However the average over the past 20 years is 25.6 which would make things seem a whole lot more reasonable... (ok that's all I can fit in)
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DISCLAIMER: It's important to note that I am not a financial adviser and you should do your own research when picking stocks to invest in. These are just some of my viewpoints, by no means would I recommend watching one KZread video and then immediately buying that stock. This video was made for educational and entertainment purposes only. Consult your financial adviser.
Пікірлер: 1 500
For all the poor souls who aren't aware yet: Comments on finance videos on KZread have a massive problem with scammers impersonating bigger KZreadrs. DO NOT message the phone numbers in the comments, because these are scammers.
@maythesciencebewithyou
3 жыл бұрын
I'd like to believe that nobody is too dumb to fall for them, but I believe that last years stock market rally was influenced alot by them. They are everywhere telling people to buy buy buy.
@alexandrosrothenberg8781
2 жыл бұрын
Yes.There are many scammers here on KZread unfortunatelly.The worst case scenario when people put out their money to them..I know a lot and each time I ask a technical questions from them they immediatelly vanished!!
The answer is: Nobody knows.
@maythesciencebewithyou
3 жыл бұрын
It really is overvalued, but the thing is that there is a shit ton of money in the world, so it doesn't matter, the amount of money decides the value of the stock market, not the economy itself, so it will always go up and down and never truly crash. There are always losers and winners in every situation. Buying now at this point would be insanity, except if you know that you won't need that money any time soon, so can wait years, even decades for the prices to go up, but risk that the company you invested in will go bancrupt before that.
@jeremywolf9472
3 жыл бұрын
Just look at the average dividend, the lower the rate the more the market is over valued.
@LemonGoofball
3 жыл бұрын
@@maythesciencebewithyou would you recommend for someone to sell their stock if they made a 400% return
@danclark6584
3 жыл бұрын
@@maythesciencebewithyou If bonds return 1% a year and a stock like sony has a PE ratio of 13 it’s a bit insane to think the market is overvalued. This is a real example and sony is a rapid growth company that already returns over 7 times more per year, it is hard to find a better investment anywhere and maybe we should care more about company fundamentals than current price bidding.
@misterpd17
3 жыл бұрын
@@jeremywolf9472 which is?
I have been watching some videos and I was thinking about investing in bitcoin or forex , but still don't know where to start from, any recommendation?
@victoriamellor2189
3 жыл бұрын
Same here ,It's strange how people talk about all the profits, they've been making through trading of bitcoin, while am here not making any profit at all. Please can Someone put me through on the right path.
@franklinbradley886
3 жыл бұрын
Most time having knowledge or insight about a particular activity can as well be a pleasing exercise. I can boldly say that forex and crypto trading is one of the profitable money exchange services that elevates investors and their financial status.
@marywills5744
3 жыл бұрын
@@franklinbradley886 That's true most people today have been having a lot of failures in forex and crypto sector because of poor orientation or bad experts
@marywills5744
3 жыл бұрын
You don't make money on forex or crypto by holding your coins rather you trade to make gains
@samanthaharwood8167
3 жыл бұрын
@@marywills5744 I believe your view
*Good video! I will also suggest everyone to buy cryptos (e.g. Bitcoin, etc.) and hold them for the long term. I've been in crypto since 2016 and made $500,000. For me, investing has helped shape my finances and I hope it counts today*
@mariebunel8617
Жыл бұрын
@Graham Stephan Please, how can I get in touch your coach you’ve just mentioned?
@kristenjosephinebalsamo7630
Жыл бұрын
Donald Nathan Scott offers a very good service and has been influential in my financial journey. I'm surprised his name mentioned here and I’m happy as to read positive recommendations here. I met Donald in Florida two years ago and I have been working with him ever since and sincerely , choosing to work with him is one of my best decision in life.
@elinarose2041
Жыл бұрын
Creating wealth and gaining financial independence isn’t as difficult as a lot of people think. Through the right information, building wealth and staying financially stable forever is way easy. Start investing, it's the only true way to earn great income and stay rich forever. I spent my 20s- 40s investing in stocks and real estate and I made a lot of money in them. Sometime in 2019, I discovered crypto and started investing in it as well. I realized it’s was by far much profitable. Now my life feels much easier and better .
@janewoodley136
Жыл бұрын
It’s never easy to invest solely , many people get into an investment because they see there friends get lucky . So you know, a lot of successful investor didn’t get rich investing on there own but got help from experts(financial adviser). It’s just a few honest ones tells you this whereas everyone claims they did it on there own . For a better investing experience, work with a financial advisor as they have broad experience when it comes to investing.
Thank you for a most enlightening presentation on such an important subject.
@clientcode1894
3 жыл бұрын
@@nasdaily6377 spell WhatsApp right
@Zippo1617
3 жыл бұрын
Scam scam scam!!! This is getting old,all that easy money to be made and your resorting to scamming...
I have been trying to self educate myself on investing into stocks. Your channel and a few others has helped me out immensely. These Stock evaluating methods are everything i have been looking for. Thanks a million!!
@franco.4613
3 жыл бұрын
Thanks for the comment. Feel free to text Mark Thomas on Bitcoin and crypto trading. He's got great strategies
@franco.4613
3 жыл бұрын
His what sapp + 1. 3. 0. 9. 2. 4. 8. 4. 4. 7. 2.
Good Info. Thanks.
Great video. I did not know about the 4th method.
Just to add another indicator. The amount of scammers here also indicates a bubble . Fraud always increases with the euphoria since it becomes very profitable.
Very interesting - thanks for sharing. I've learned so much the financial markets over the last six months!!
@WeideMarket
3 жыл бұрын
@@nasdaily6377 thank you - what about though?
@apparition4196
3 жыл бұрын
@@WeideMarket its a scam, not even the reak cooper academy if you look at his profile.
@WeideMarket
3 жыл бұрын
@@apparition4196 I suspected as much - don't trust random messages like that
A bit of confirmation bias, as this video sums up my thoughts about the market. I’ve kept the majority of my portfolio in stocks because I don’t see a better alternative, it’s worked well so far. My estimates for future returns are fairly similar. Gold has been one of my other alternative preferences to Treasuries, since Treasury prices are getting absurd. Thanks for the video!
THANKS FOR THE VIDEO
Excellent video. Very informative and helpful.
@extravod1794
3 жыл бұрын
Wow that's nice, thanks for replying, you can send a message to my administrator Richard Harris on watsap to earn in crypto. ..+..1..7..0..3..6..5..6..9..4..2..3.. He's excellent at what he does, tell him I referred you to him. His passionate strategies are top notch.🇺🇸🇺🇸 🇺🇸☑️
Well done! A good simple overview. Some I knew, some was new... perfect!
@custodydrama9693
3 жыл бұрын
@CA Rachana Phadke Ranade bhai kyu Rachana ka naam kharab kar raha hai tu
Excellent breakdown
Nice video! 👌🏼
Could you use sections on your videos? e.g. Intro, 1, 2, 3, 4, Conclusions
The salient thing is to observe what has happened to the market after every crash. It goes back up... and always higher than before. So unless you need to realize continuous gains in order to put food on your plate, you should be sticking around for the long term growth. And reinvest those dividends and cap gain distributions.
This was a great video.
The investment comparison methods all look good. Not surprised that stock investment came out on top even in the inflated market. However, you should also look at stock price movement along with the return on your investment. For instance, a stock you bought for $100 may have earned you 5% return in a year, but if it's price has gone down to $90 and if you had to sell your stock then you lost $5. People should think of this risk before concluding investing in stock is superior to other investments. Sure all investments carry risks, but the risk is virtually nil in government bonds. Even bank deposits and investment in gold and property pose less risk compared to stock investment. So at the end of the day nothing comes free. If you are looking for higher return it comes at the cost of higher risk. Lower returns also carry low risk.
What about the interest rate? It should also be a component in valuations...
@franco.4613
3 жыл бұрын
Thanks for the comment. Feel free to text Mark Thomas on Bitcoin and crypto trading. He's got great strategies
@franco.4613
3 жыл бұрын
His what sapp + 1. 3. 0. 9. 2. 4. 8. 4. 4. 7. 2.
Excellent presentation, clear and explicit. Thanks!!
Thank you very much for let me know the forth indicator.
Good info
Very high-quality content! Quite convincing with a logical presentation. Keep this up!!! 🔥🔥🔥
Nifty right now is at a all time high P/E of 39. Usually stable between 24 and 28. If it crashes from here, it's gonna be some sight. Not really sure it would "crash" though.
@alvinantony2696
3 жыл бұрын
Finally someone talking about nifty.. even I think the same , it's record time high pe ratio with all the other things going on.. Not sure how the market gonna act. Still wondering how market recovered so soon after covid.
@erickw1512
3 жыл бұрын
I think we should use last year’s EPS since current EPS is dropped.
@ruturajzanzane6868
3 жыл бұрын
Pe is high because revenue are less due to covid. When revenue will recover pe will also fall.
Such a good video
Excellent video
The stock market is now the only game in town so more people are investing their money
@maythesciencebewithyou
3 жыл бұрын
I kinda wish it were the only game, but people have been throwing money at everything. Bitcoin has a ridiculous all time high, the property market is still getting more expensive. People have too much money in their hands that they don't know where to put it but want more of it.
@F4ckForFun
3 жыл бұрын
well said
Quite a lot of scammers in the comment section lately
@captainyolowaffle3160
3 жыл бұрын
Me and my alts went to one of them and told him to leave the platform lol
@captainyolowaffle3160
3 жыл бұрын
I hope he stops scamming
@am33x
3 жыл бұрын
lmfao those bots with crypto Stock is the king of investing, you missed the bitcoin in 2010, then fuck it study real investing.
@captainyolowaffle3160
3 жыл бұрын
@@am33x Yeah, Bitcoin doesnt seem great to put *all* your money in
@animenomad4186
3 жыл бұрын
@@captainyolowaffle3160 you know the golden rule "If everyone is talking about it then you probably have missed the train"
I love your channel!!!!!!!!!!!!!!!
@user-ks2bo9pk5v
3 жыл бұрын
*There's a Gaining key on how to invest into Crypto and Stock and make good Profit with your investment Are you interested?
This video is a greaaaaaaaat report. 🗣❤️❤️❤️
Most people venture into crypto to be a millionaire, meanwhile, I just want to be debt free
@greggeorge6711
3 жыл бұрын
That's very practical and smart goal, a wise man once said do everything you can to get outta debt, one of his tips to getting rich
@lioneltheophilus2151
3 жыл бұрын
You don't make money on forex or crypto by holding your coins rather you trade to make gain
@stevewilliams760
3 жыл бұрын
@@lioneltheophilus2151 Crypto is the future, investing in it will be the wisest thing to do especially with the current rise
@dannysamuel4056
3 жыл бұрын
If you ask me, I think bitcoin has something big for the world, but having a good mentor is the best
@darlingtonsam3614
3 жыл бұрын
@@stevewilliams760 stock is good but crypto is better
“Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves.” - Peter Lynch
@Matt-gf4gd
3 жыл бұрын
I hedge my investments rather than just abstaining from investing. Keep more as cash/savings and invest more in value dividend stocks as I see the market becoming overpriced and bubbley. Like most things, there's dumber and smarter ways of doing it.
@leeshepherdtrading
2 жыл бұрын
Your comment is bang on the money. Buy the dips.
@sujoy1660
2 жыл бұрын
@@leeshepherdtrading r u sure ?lol
@leeshepherdtrading
2 жыл бұрын
@@sujoy1660 Lol. You’re trying to be cute but you’re not very clever. Open a chart mate and look back over last 8 months since I made the comment. Every time it’s gone up. 🤣🤷♂️. Buy the dips then sell in to your profits,……. Hence….way to make money. Now run along back to your grotty little apartment mate. 👍
@PostalWorker14
10 ай бұрын
Stock market is all speculation
Thanks
Nicely presented
@extravod1794
3 жыл бұрын
Wow that's nice, thanks for replying, you can send a message to my administrator Richard Harris on watsap to earn in crypto. ..+..1..7..0..3..6..5..6..9..4..2..3.. He's excellent at what he does, tell him I referred you to him. His passionate strategies are top notch.🇺🇸🇺🇸 🇺🇸☑️☑️
If a taxi driver is telling you what to buy in the stock market.......sell everything and get out
@DT-qi1kj
3 жыл бұрын
Has that happened yet?
@rdsiddarth7835
3 жыл бұрын
Why
@AMGWCLass
3 жыл бұрын
@@rdsiddarth7835 sell when everyone talks about buying and buy when no one is talking about it. Don’t be a sheep be smart :)
@adriancran5909
3 жыл бұрын
Uber drivers loading up on bitcoin is a good sign!
@leeshepherdtrading
2 жыл бұрын
My nan has just told me to invest in Bitcoin. 😂
I do not have a lot of knowledge about the stock market, but investing seems to get more popular than ever. So you would say that brings up the price as well. as long as more new people invest in stocks it will keep going up. so do not wait and invest now
@NoOne-hv1wz
3 жыл бұрын
Thanks for the uneducated advice
@maythesciencebewithyou
3 жыл бұрын
The major boosters are young people influenced by memes and gurus, who tell them to invest. They have less inhibition since there are brokers that let them buy and sell without taking any commision like Robinhood. Many of whom haven't lived through the Dot.com bubble, but think themselves smarter than their parents and grandparents thus believe that can't happen to them. What drives the markets currently are meme stocks and FOMO. Many people have become crazy rich, which makes more people jump on the wagon wishing to do the same. They will have a harsh awakening, because the last fools will have to foot the bill. People have clearly more money than brain cells. I knew people were irrationally dumb, but if I had known how foolish people are I would have sold later, but that's hindsight. Now I have a good grasp on how much money is floating around that is caryying the markets. That money has no real counter value. Money creates a money bubble. The people are rich on paper, but will cry when everybody tries to sell about the same time.
@leoliu7840
3 жыл бұрын
Yea, when more people buy a stock, there is less of it in supply, causing the stock price to go up It's good to start learning about investing asap, but it's better if you wait until a market correction to buy
@josephj.155
3 жыл бұрын
all of you are so fucking wrong. Theres a saying that goes "When the shoe shiner is giving you advice, then the market is going to crash".
@josephj.155
3 жыл бұрын
@@maythesciencebewithyou correct
Excellent
is that inflation adjusted?
I had been wondering about this today.. This vid came out at the perfect time thanks
@benreals4495
3 жыл бұрын
Where are you from
@jeevanv8631
3 жыл бұрын
@@benreals4495 I think he is from india from the surname
@vincentsmart3273
3 жыл бұрын
@@benreals4495 Well I would love to introduce you to a stress free way of earning money and it’s lucrative and legit would you be interested
@vincentsmart3273
3 жыл бұрын
@@jeevanv8631 Well I would love to introduce you to a stress free way of earning money and it’s lucrative and legit would you be interested?
@filmynerd6393
3 жыл бұрын
Exactly bro Me too!!!
I dont know why gold and bitcoin are not higher. I was reading intelligent investor and i liked the part where he talks about markets being at a top when new companies ipo and have greater market caps than mid cap established companies. Sounds so much like today's environment. Great book btw
@vigostine
3 жыл бұрын
Just bought that recently, glad to see this comment
Congratulations! Greetings from Argentina
Gold silver and number plates
Toronto is still in Canada, not US (1:32)
@vincentsmart3273
3 жыл бұрын
Well I would love to introduce you to a stress free way of earning money and it’s lucrative and legit would you be interested?
I have a slight suspicion the market may be a little overvalued right now...
Which index to compare to in India?
Thank you very much.
@extravod1794
3 жыл бұрын
Wow that's nice, thanks for replying, you can send a message to my administrator Richard Harris on watsap to earn in crypto. ..+..1..7..0..3..6..5..6..9..4..2..3.. He's excellent at what he does, tell him I referred you to him. His passionate strategies are top notch.🇺🇸🇺🇸 🇺🇸☑️
Amazing information and thank you for sharing it. But I think you forget something important in your analysis. The annual change is not 2.5% this year, and the return of stocks is particulary high because of the high PE ratio. Annual change for 2020 of US is currently -3%, PE ratio can't be 3% when the economy isn't going well. So I guess the real return of investing in S&P in 2020 is negative in terms of value
@OmarBReal
3 жыл бұрын
The market literally went up over 3% just in the past 2 days. Time in the market > timing the market.
@vivetytwo3205
3 жыл бұрын
@@extravod1794 Dont be stupid. This is fake.
*No 1: Don't Only Hope On Government's innervation on Economy growth,* *No 2: As An Individual Look For Different Self Business And Trade Not Only Waiting on Betterment of Stock market activities,* *No 3: Most Important Always Save The Little You Can And Think Of What To Do With It When It Become Good For Capital.* *Because Government Have Failed Us In Aspect Of Economics Activities And Other Trading Systems*
@misspetersjonathan8114
3 жыл бұрын
I have always believe in Stock market and other Economics activities but Is really unfair that 2020 trading and stock market is just difficult and unbelievable which is too bad now i rather invest my money only on bitcion and gain more profit in return
@nelsonchris9568
3 жыл бұрын
Yes sure Bitcoin trade is great unlike the stock market and other financial market Bitcoin has no centralized location since it operates 24hour's in different parts of the world
@harrywilton3390
3 жыл бұрын
Bitcoin trading might make you rich if you are hedge found with deep pockets or an unusually skilled currency trader
@winebrrymoe3082
3 жыл бұрын
Exactly that's true if you have a good investor you have nothing to Worry about
@JamesWilliams-nj6zj
3 жыл бұрын
Wise words that's just the fact and also what is happening day by day
Good job
@extravod1794
3 жыл бұрын
Wow that's nice, thanks for replying, you can send a message to my administrator Richard Harris on watsap to earn in crypto. ..+..1..7..0..3..6..5..6..9..4..2..3.. He's excellent at what he does, tell him I referred you to him. His passionate strategies are top notch.🇺🇸🇺🇸 🇺🇸☑️☑️
Problem with Buffet indicator is a fixed multiplayer? Whats to say multiplayer should not be differential like x squared. Assets dont grow linear.Asset growth is compunded. So gdp to market ratio of 2x would grow to 10x in time
If it looks like Tesla’s chart, chances are it’s overvalued.
@vidainvestor
3 жыл бұрын
Yes is overvalued but compare to his grow potential not so much ,the expensive price of today is cheap depending on that grow , in 3 years Tesla share will grow even more
@Zippo1617
3 жыл бұрын
Tesla share price will drop to 300-400 in 2021 its a great company the growth has been priced in, also the market is overvalued...there’s only one outcome short term long term 10+ years its a great investment
@leemacdonald6533
3 жыл бұрын
@@vidainvestor lets see how that comment ages, my guess is tesla is currently overvalued.
@retireby40_lalala
3 жыл бұрын
Ppl who think TSLA is not overvalued prob dont even know what P/E ratio is.
@randomcon123
3 жыл бұрын
Love how you leave it to “chance”... very convincing lol
It’s 4:48 in the US are you insane? 😂 great video!
@franco.4613
3 жыл бұрын
Thanks for the comment. Feel free to text Mark Thomas on Bitcoin and crypto trading. He's got great strategies
@franco.4613
3 жыл бұрын
His what sapp + 1. 3. 0. 9. 2. 4. 8. 4. 4. 7. 2.
What a great vedio👍👍👍👍👍👍
@extravod1794
3 жыл бұрын
Wow that's nice, thanks for replying, you can send a message to my administrator Richard Harris on watsap to earn in crypto. ..+..1..7..0..3..6..5..6..9..4..2..3.. He's excellent at what he does, tell him I referred you to him. His passionate strategies are top notch.🇺🇸🇺🇸 🇺🇸☑️☑️
This affirmed two very integral factors I've been concerned with: 1. Yes, the stock market is rabidly overvalued. 2. But with the ROI in bonds thanks to insanely low interest rates, might as well gamble on the indexes and in real estate.
In summary: if you see interest rates increase g.t.f.o of the stock market?
@Anonymous-wy5dc
3 жыл бұрын
buy the dip
@dantheman1534
3 жыл бұрын
PIGS (GREED) GETS SLAUGHTERED
@sam805236
3 жыл бұрын
No no no, if the stock market crashes prepare to buy buy buy! That's how the rich get richer, the stock market is a long term game, there will always be ups and downs, always! If you had 1,000 stocks before the crash, you'll still have the same number after and as long as you pick good companies they will bounce back and probably increase in the long run.
@leeshepherdtrading
2 жыл бұрын
@@sam805236 Mate half the companies in the S&P500 from the year 2000 are no longer in existence. So your strategy does not stack. 👍
Perfect time for this video
@vincentsmart3273
3 жыл бұрын
Well I would love to introduce you to a stress free way of earning money and it’s lucrative and legit would you be interested?
@captainyolowaffle3160
3 жыл бұрын
@@vincentsmart3273 No Ima take a hard pass on that MLM your tryna do
@vincentsmart3273
3 жыл бұрын
@@captainyolowaffle3160 Okay try and chat with me on WhatsApp
@JPDuval-xy4yy
3 жыл бұрын
@Vincent Smart nice try bruh
@vincentsmart3273
3 жыл бұрын
@@JPDuval-xy4yy hmm 🤔
was that uc riverside?
How do you get the buffet indicator?
@extravod1794
3 жыл бұрын
Wow that's nice, thanks for replying, you can send a message to my administrator Richard Harris on watsap to earn in crypto. ..+..1..7..0..3..6..5..6..9..4..2..3.. He's excellent at what he does, tell him I referred you to him. His passionate strategies are top notch.🇺🇸🇺🇸 🇺🇸☑️
Oh the stock market has been over valued for nearly 8 years yet no crash, except for the corona bump, but that had nothing to do with fundamentals of the market. Every year it's "next year will be the crash". And putting this information out in the midst of the Corona virus crisis just isn't relevant, there is a reason interest rates are so low.
Yes, certain stocks like Tesla with its 1000 p/e are stretching the average up. The rest are mostly ok.
@Monk-Amani.
3 жыл бұрын
One out of the thousands is overpriced?
@kurtglaser2774
3 жыл бұрын
The average market PE is at 33..mostly ok ya right. Even with the fed manipulating markets that’s way overvalued compared to history. But please keep buying we need someone to hold the bag so our shorts will play out.
@serenitycoastUK
3 жыл бұрын
Not sure how a company which lost almost $1 billion dollars last year and also the year before is somehow "successful"
@kurtglaser2774
3 жыл бұрын
@Allie Marie i would agree if we were in an academic setting but in the real world you have to take into account risk. However what you said is the most important part..essentially what you said is it is different this time. Those are the most dangerous words and lead to investor complacency which has resulted in the loss of trillions of dollars in investor dollars over the years. The Great Depression, the nifty fifty, the dot come bubble, and the financial crisis.
@Zippo1617
3 жыл бұрын
I sold all my Tesla stock yesterday!! Next year it will hit 300-400 way overvalued great long term investment 10 years plus.. now it’s been added it’s won’t be so volatile...at a guess
Can we look for emerging countries on that website?
Thank you so much!
i thought we should be greedy when others are fearful...contrarian way to say buy?
@Charles50Kal
3 жыл бұрын
Buy nio Inc
@JRTKesha
3 жыл бұрын
Actions speak louder than words: people may *say* a crash is coming, but what they *do* is buy more stocks, causing prices to climb ever higher. The point is to avoid piling into the bubble with everyone else.
KZread’s algorithm is warning me of the coming market crash !!
@ConcussedGaming
3 жыл бұрын
Use the advantage you are given! Bidens "administration" is gonna cause the economy to crash. He wont last 8 years. So buy, buy, buy!
@David-ig6te
3 жыл бұрын
@@ConcussedGaming if the markets are going to crash shouldn’t you be selling
@maziu27
3 жыл бұрын
@@David-ig6te you buy when the price falls
@hamzan9771
3 жыл бұрын
@@maziu27 why tho😂
@maziu27
3 жыл бұрын
@@hamzan9771 😐🤦♂️ you buy when the price falls so when it goes up you make more profit. Buy low sell high
In thelast method, if your return is lower vs Other Assets and Yet you are paying so much to get in the market then its over price, is that it?
A. Kay. Yay!
Most the of people I know invested in the stock market have made at least 100k since March of 2020. I have made 45k but I play conservatively. I honestly think a correction is going to happen.
@lillianrosas2289
3 жыл бұрын
What stocks did you buy if you don’t mind sharing ?
@MrDienkhanh82
3 жыл бұрын
@@lillianrosas2289 Nvidia, Microsoft, apps, pltr, amd, AAL, AB and more.
@Longtack55
3 жыл бұрын
Actual $ values quoted is rubbish. I work in percentages as do real investors. I have made 100%.
@sonny12681
3 жыл бұрын
@Feairless Soul fake
P/E ratio is now at 38.5...
@krysiunia
3 жыл бұрын
☹️
1:33 that is Toronto...Toronto is in Canada, which, contrary to popular belief, is not a state, but a sovereign country. OH, and by the way, Canada's stock market, the TSX (Toronto Stock eXchange) is traded in - you guessed it - TORONTO
10:52 Not if you put it in I bonds
P/e ratio of zoom is surely bubbles anyone agree?
The market is not overvalued. Some reasons being because there is more access due to technological advances as well as many brokerage adopting the "no commission" trades. Many more but you get the point.
@michaelric3540
3 жыл бұрын
Lol this is exactly why it is overvalued. When the shoeshine boy is giving you stock tips. It’s time to bail.
Nice I have been thinking alot but I ain't no genius I'm focusing on individual companies and their fundamental
Does the schiller index takes the interest % and the inflation/deflation into account?
Buy sliver and crypto now
@pinnedrickygutierrez5916
3 жыл бұрын
Crypto is the future
@richardlogan42
3 жыл бұрын
Trading crypto has become a lucrative way of making money
@stunnercoke6260
3 жыл бұрын
Stock are good too
@bulkywoods2398
3 жыл бұрын
@@stunnercoke6260 Stock are good crypto is better
@kerenseyllervanvleet8746
3 жыл бұрын
I wanted to trade crypto but I got confused by the fluctuations in price
Can it be thet corona is missleading in this calculation? When everything is open like normal people will start spending more money
@keithblain8763
3 жыл бұрын
The world is in a pandemic and the US Markets are hitting all time highs. The stock market has rebounded but the economy could take a couple of years. Too many small biz went under. Stimulus is propping up economy and Feds are artificially keeping interest prices down.
@Showmetheevidence-
3 жыл бұрын
Excepts it’s been a year already..............
Great video thanks!
Now I know why the market is not falling after the peak.
I’m more curious about what to do about it. If the market is overvalued now (Tesla pe of 1800 anyone!?)... then what? Sell everything and wait? Just stay in and see what happens? Bonds are a joke with basically 0 interest.
@vukkovacina7114
3 жыл бұрын
If the market is overvalued and you're so sure about it, short it
@mixingitup7653
3 жыл бұрын
Add a stop loss so if the price goes down it automatically sells at your stop loss price
2:17 Did the index showed me a finger !!!
So. We got the P/E-G number. We looked at other options. Interest rates are zero. So, It looks like I need to patiently sit on cash, maybe even lock in the near-zero rates long term, and wait for interest rates to go up, which will drive stocks and real estate down. Then be ready to invest.
@vaibhavrothe3820
3 жыл бұрын
you may be dead by that time...
@andrewdiamond2697
3 жыл бұрын
@@vaibhavrothe3820 Times change. Unless interest rates go negative and we move to hyperinflation, I'll be fine.
That was a nice video. When I saw the title I thought you would talk what a trader would say but you do it on a very objective standpoint. Really great and I personally learned something what really matters. There is still something what isn't calculated in but told... since there are no other possibilities many people put their money on the single best which drives prices higher and higher. Is there any calculation where you can correlate the sums of money in the money eco system which flooded the stock market? How much money is in the stock market? How much in the bond market? How where they related to each other?
7:15 you’re basically saying ‘earnings = returns’...Shouldn’t returns be derived from profits instead ?
@ColeDaSoul
3 жыл бұрын
Which means it’s even worst. right? Just curious
@Showmetheevidence-
3 жыл бұрын
I think the yanks use the words interchangeably. They mean “profits” when they say earnings. The other point is that even if they don’t pay out the money, they should use that for future growth, so investors should benefit either way.
So, in other words, "yeah, a stock market crash is coming, but what else are ya gonna do with your money?"
@Showmetheevidence-
3 жыл бұрын
Exactly... kinda unuhelpful overall
@general_alexus2533
3 жыл бұрын
Keep some money aside to go short as soon as the time comes as well as to buy in after the correction.
@chrisviljoen4151
3 жыл бұрын
Gold? Warren buffets "buy when others are fearful and vice versa" should help here, because everyone (people who don't understand the market, and investors who are part of the hype, and this probably constitutes for 90 to 95% of investors) wants stocks and doesn't want gold... See the connection?
@general_alexus2533
3 жыл бұрын
@@chrisviljoen4151 But Gold already exploded because #everybody sais that Fiat-money is bad, so I am not quite sure. In the crash 03.2020 gold also tanked because big investors had to sell gold to cover losses of the stock, it than rebounded so everyone forgot about it. In a Crash where everybody looses money, and many people need money (because they loose theire job ect.) nobody will have the money to buy gold and the price falls.
Great stuff, grats
Trying to time a correction is like playing on a roulette tabled. Sources: Me who sold apple at 121
Tesla P/E Ratio is more than 1000. 😂
@gauravbhanshali8201
3 жыл бұрын
Saw that yesterday, it's really horrific man
@Filthypagan
3 жыл бұрын
1200
@ollieo7038
3 жыл бұрын
@@Filthypagan need to also account for growth and it becomes more reasonable, but yes, expensive
@I_like_turtles_67
3 жыл бұрын
BuT iT's ThE fUtUrE.
Why only compare to bonds or banks? Why not Gold? Precious metals? Bitcoin even?
Awesome vid!
Good job bro! Excellent video...
If the stock name is Tesla is overvalued.
@user-pe2yx9kt4e
3 жыл бұрын
Yes!!! Thank you
@sg123iscool
3 жыл бұрын
Lazy thinking
@bandawhat33
2 жыл бұрын
big time
Guys there are bunch of scammers pretending to be the youtube channel with zero subs. An heads up 👍
@ramirezbakra4624
3 жыл бұрын
@@extravod1794 Not this again
Fantastic video!
@franco.4613
3 жыл бұрын
Thanks for the comment. Feel free to text Mark Thomas on Bitcoin and crypto trading. He's got great strategies
@franco.4613
3 жыл бұрын
His what sapp + 1. 3. 0. 9. 2. 4. 8. 4. 4. 7. 2.
We need the inverse of that !!
It's stupid to predict the stock market. Just buy in regular interval and hold it forever.
@SuperCaptain4
3 жыл бұрын
@Saami Zakir it only matters if you put everything in at once, if you put in a little at a time over a long period then you'll get the average market return for that duration
@Longtack55
3 жыл бұрын
Yeah buy Long Island Light. Are you an idiot?
So all indicators are saying the market is overvalued
How about sp500 ev/EBITDA?
Real Return vs Nominal. Without explaining/understanding this vital factor, much of the analyzing does not point to the reason why investors continue to successfully invest in equities. 💵
@maythesciencebewithyou
3 жыл бұрын
The success comes from convincing fools to get into the market and buy buy buy more stocks, which inflates the prices.