For Only the 6th Time Since 1870, This Valuation Metric Offers a Warning to Wall Street
If there's one thing new investors should understand, and tenured investors constantly need to be reminded of, it's that Wall Street can be unpredictable. Although it's proved to be a money machine for patient investors over numerous decades, the moves stocks make over shorter time frames are difficult to forecast.
While there are no foolproof indicators or metrics that can concretely tell us which direction stocks will head next, there are an abundance of tools we can use as investors to make our lives easier. One such valuation tool, which has been back-tested all the way to 1870, offers a rather ominous warning for Wall Street and investors.
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Source Fool.com
