We like  to study the charts of “value” indicators that show under valuation and over valuation. As you know,  the “value of US stocks to US Gross Domestic Product” is currently between 140% to 150%. In the past this level has led to market declines of 30% to 50% twice in the last 100 years.

Stock Market Value to Gross Domestic Product looms over everything we do…and? $16,617,000,000,000 ! Be aware that the dollar value the Standard and Poor’s 500 which represents approximately 74% of the value of all the United States publicly traded stocks is currently at $16,617,000,000,000 ($16.6 Trillion). We also estimate the dollar value of the non-Standard and Poor’s 500 stocks to have a value of approximately $4 Trillion. (By the way, at its 2001 high, just NASDAQ carried a value of $6.7 trillion which was a ludicrous overvaluation but very few paid attention.)

From www.Canadianmineanalyis.com site 1-Shareholders of gold mining stocks must keep in mind that we do not have the requisite start of a bull market in gold bullion yet. It is coming and we think that it will begin soon, but note that last summer of 2013, we suggested that many gold stocks were in the process of making their bottoms which they have now completed.