Caution advised, wait for some “sales” on stocks…good news for Gold
The Ominous Indicator….Stock Market Value to Gross Domestic Product Generally speaking, we are always fully invested in the stock market. We look for stocks that are suffering through bear markets and take positions. We are bottom fishers in every sense. For three years we were expecting on average 20% declines followed by returns up which would have washed out or at least limited overvaluations. However with near zero interest rates, the reasonable and normal corrections have been avoided. Corrections and bear markets permit investors the opportunity to invest when stocks are on sale. Simply stated, better and cheaper buying opportunities present themselves regularly. It is when excesses are flushed out.