Worth Reading 8.1.14

A perfect supplement to my post from yesterday, covering how valuation metrics point to a major market decline in the future, is today’s McClellan Market Report article, “A Scary Valuation Indicator” that includes the below chart using a blend of the Cyclically Adjusted P/E ratio and Moody’s Baa yield to predict market tops, with the implication we are much closer to a major top than away from one.

CAPE-Baa-July2014

Source: McClellan Financial

 

 

 

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