BEHIND THE MONEY: After a 50% Drop, Stocks Could Still Be Overvalued
After a 50 percent decline since the S&P 500 set a record last year, are stocks finally cheap? It's the question everyone is asking. Playing around with the "Trends" feature on Google, I found that the number of news articles with the words "cheap stocks" have surged. More than 5,000 articles around the world today alone use those terms. I know in my world, the Fast Money traders are getting tired of me asking that question on our morning conference call.
It's a natural inclination to ask that question as share prices tank by this magnitude. If you look at the "cheap stocks" reference chart provided by Google, it is a mirror image of the the S&P 500 over the last 2 months.