Home > Creativity, Markets, Uncertainty > Profitable ETF Strategies: Market Valuations

Profitable ETF Strategies: Market Valuations

The great Dr Brett Steenbarger writes:

Based upon the replacement cost for assets of the S&P 500 companies, the index should be trading around 910 — roughly where it stands now. At historic market lows since 1920, however, indexes have tended to trade closer to somewhat above half their replacement cost.

Our market classification tool will alert us to the price action that indicates the fear ahs subsided and rational evaluation taken over, but with volatility at all time highs, we are still quite a ways off from that.

In times of chaos, sulesets and systems must be set aside and time frames shortened to allow for framing trades that make sense inside the waves of chaos swilring around you. Coke, JNJ, and WMT should be leaders out of this storm, so I will be watching them especially closely

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