It's certainly overbought, but I don't think price to sales is a good metric. I don't know what the P/E or PEG is, but that's more appropriate because technology has caused productivity to decouple from wages. In other words, lower variable cost technology companies with higher margins are leading the markets higher. The problem is going to come when the supply of credit starts to dry up causing growth/carry trade/debt service issues and the asset allocation imbalance(too high concentration in riskier assets) amplifies it.
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I think it's just one indicator. There are so many and I want to cover as many as I possibly can. The only indicator that has been positive has been the stock market itself. The economic factors have been dismal.