You might want to use this stock market indicator. It's based on fundamental economic analysis - the value of the S&P compared to the replacement value of its components. I didn't include it in my book becuase at the time of writing, it was neither simple nor free. Now you can see it in graph form at VectorGrader.com
Tobin's Q Ratio seems to be a pretty good indicator for the S&P 500 Index.
2 comments:
Is this some kind of global Price/BookValue ?
Any simple rules to interpret ιt?
Exactly.
Because its range is so great, it identifies extreme values in the stock market.
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