The US stock market is officially in a massive bubble based on the one valuation metric that cannot be faked.
Corporations can engage any number of accounting gimmicks to juice their earnings, cash flow, and dividends… for this reason P/E, P/CF and P/DY ratios are all suspect when it comes time to value a corporations.
Sales cannot be gimmicked. Either money comes in the door, or it doesn’t. And if a company is caught messing around with its sales numbers, someone is going to jail.
For this reason, Price to Sales is perhaps the single most objective and clear means of measuring stock valuations.
This metric, above all others, you can point to and say, “this is definitively accurate and has not been messed with.”
On that note, as Bill King recently noted, today the S&P 500 is sporting a P/S ratio that is massively higher than it was in 2007 and is only marginally lower than it was during the Tech Bubble (the single largest stock bubble of all time for most measures).
(source: The King Report)
There is simply no way to look at this and not call it a bubble. It is well above the 2007 bubble and only slightly smaller than the Tech Bubble (which everyone now looks
This bubble, like all bubbles, will burst. And when it does, the market will crash, just as it did in 2000 and 2008.
And smart investors will use it to make literal fortunes.
If you’re looking for a means to profit from this we’ve already alerted our Private Wealth Advisory subscribers to FIVE trades that will produce triple digit winners as the market plunges.
As I write this, ALL of them are up.
And we’re just getting started.
If you’d to join us, I strongly urge you to try out our weekly market advisory, Private Wealth Advisory.
Private Wealth Advisory uses stocks and ETFs to help individual investors profit from the markets.
Does it work?
Over the last two years, we’ve maintained a success rate of 86%, meaning we’ve made money on more than EIGHT out of every ten trades we make.
Yes, this includes all losers and every trade we make. If you followed our investment recommendations, you’d have beaten the market by a MASSIVE margin.
However, if you’d like to join us, you better move fast…
… because tonight at midnight, we are closing the doors on our offer to try Private Wealth Advisory for 30 days for just $0.98.
This is it… no more extensions… no more openings.
To lock in one of the remaining slots…
Best Regards
Graham Summers
Chief Market Strategist
Phoenix Capital Research
