Chinese officials are expected to be in Washington this week to hold consultations with the U.S. ahead of high-level trade talks in October.World Economyread more
Saudi Arabia's defense spending is the world's third-largest — behind the U.S. and China, says Gary Grappo, former U.S. ambassador to Oman.Energyread more
President Donald Trump said Monday he's in no rush to respond to a coordinated attack that hit Saudi Arabia's oil industry over the weekend.Marketsread more
The price of oil could go sharply higher, depending on the duration of the disruption at Saudi oil facilities and whether there is a military response.Powering the Futureread more
Energy stocks, one of the worst-performing sectors this year, spiked Monday after an attack on Saudi Arabia's heart of oil production Saturday sent oil prices soaring.Marketsread more
The Saudi-led military coalition battling Yemen's Houthi movement said on Monday that the attack on Saudi oil plants was carried out by Iranian weapons and did not originate...Oilread more
After a series of setbacks on the road to an initial public offering, the parent company of real estate start-up WeWork is delaying the move, sources told CNBC Monday.Technologyread more
"The United States military, with our interagency team, is working with our partners to address this unprecedented attack and defend the international rules-based order that...Politicsread more
Crude oil's spike following attacks on Saudi Arabia's energy supply has experts weighing whether or not the gains will last.ETF Edgeread more
"In the old days, the averages would've plunged on this kind of oil shock. I know because I've lived through a bunch of them, starting in 1973," Jim Cramer says.Mad Money with Jim Cramerread more
Traders in the fed funds futures market on Monday were pricing in a 34% chance that the Fed will stay put on rates.The Fedread more
By one measure, stocks are as pricey as they were before the dotcom bubble burst, and that should give investors pause moving forward, according to Doug Ramsey of The Leuthold Group.
The firm's chief investment officer said in a note Friday that the S&P 500's price-to-sales ratio is around 2.2, near the highs seen in early 2000. The price-to-sales ratio is a valuation metric that compares a company's stock price to its revenue. The higher it goes, theoretically the more expensive the stock is.
"For the last year, we have labeled the Price/Sales ratio—which has returned to its Y2K bubble levels—the 'scariest chart in our database,'" Ramsey wrote. "Recall that the initial visit to present levels was followed by the S&P 500's first-ever negative total return decade."
The price-to-sales ratio is not the most popular valuation metric on Wall Street but it may be one that is least likely to be manipulated. Most professional investors look at the price-to-earnings ratio, which measures a company's price against its profit. However, some experts argue earnings can be manipulated through different friendly accounting practices.
Equity valuations rose sharply during the dotcom bubble as investors poured money into several nonprofitable internet companies. Once the bubble burst, many of these companies folded and the stock market lost half of its value as all of them plummeted in value. This year, the S&P 500 is up more than 6 percent and reached an all-time high in late January.
But Ramsey said the overvaluation today may be worse than during the bubble, noting the median S&P 500 price-to-sales ratio for specific companies today is more than double than it was in February of 2000. "The nature of this market's overvaluation is very different than in 2000," he said. "Overvaluation in 2000 was highly concentrated; today it is pervasive."