Stock Funds Lure Most Cash in 13 Years as Investors Chase Rally - Businessweek
Warren Buffett's Favorite Market Indicator Shows the Stock Market Is Overvalued (^DJI, ^GSPC, TWTR)
"Corporate profit margins are at all-time highs, and earnings are not growing. The S&P 500 is rising on earnings-multiple expansion, rather than earnings growth, and it looks overvalued.
The cyclically adjusted P/E ratio (a.k.a. the Shiller P/E) is at 25 -- about 50% above its historical average of 16.5.Respected investors including Jeremy Grantham, Wally Weitz, Donald Yacktman, Steven Romick, and Seth Klarman are building large cash positions. This indicates that they do not see opportunity in the marketplace currently and would rather be in cash to take advantage of future opportunities.All the w...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.