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Is Mr. Market getting a little silly?



July 10, 2007 – Comments (0)

For the first time since I started competing on this site, I was not able to add any "outperform" positions.  I ended two, GIFI and YZC, and gave "underperform" ratings to two new picks, HOKU and ATHR.  I would have "shorted" CRYO, but rules on this site do not permit me to do so.  I also finished my "underperform" rating of ISSC.

Given that there were no new "outperform" positions, are the valuations of the market favoring a downturn?  The current P/E for the Wilshire is over 19 when the historical average is 15.  Current growth rates do not support this type of valuation.  The current P/B is 2.82, which, in the minds of many value investors, is quite high.

Perhaps, value players need to step back and watch for a spell.

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