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Are Stocks Overvalued?

I am so tired of this dunderheaded process where the movement in the price of oil often becomes the catalyst for the stock market. Yet that is exactly what happened once again on Wednesday.

At 10:30am ET the weekly inventory report came out. A 2.5 million barrel reduction of inventories was the expectation. Unfortunately the 180 degree inverse happened, thus tanking oil prices...then the overall market.

This flawed logic has made way for many "buy the dip" opportunities in recent history and will be so again this time around. Truly it is 2200 or bust time now. Don't allow yourself to get slipped up by this oily mess.

Now I know some of you who thought stocks were overpriced at 2000...even more so at 2100 and ridiculously so as we move up to 2200. Thus, it's a good time to check out this timely article from Kevin Cook discussing the valuation of this market and what it means next for stock prices.

How Overvalued Are Stocks?

Best,

Steve Reitmeister

Executive Vice President, Zacks Investment Research

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