Home » Is the Market “Overvalued”? (The Truth)

Is the Market “Overvalued”? (The Truth)

Hey, Ross here:

With Nvidia now the biggest stock on the market, talks about “overvaluation” and references to the Dot-Com bubble are heating up.

So, to close out the trading week, let’s look at where things are really “overvalued”.

Chart of the Day

Source: A Wealth of Common Sense

This chart shows how the price-to-earnings ratio of the Top 10 S&P 500 stocks have changed over the years versus the remaining 490 stocks.

And as you can see on the green line on the leftmost chart, the Top 10 stocks have seen their P/E ratios shoot up in recent years…

While the P/E ratios of the other 490 has remained relatively stable.

Plus, even for the Top 10, you can see their valuation is still significantly below the 2021 peaks and FAR below the Dot-Com bubble era.

In short, nothing to worry about for now.

Plus, it also reveals where most of the opportunity lies.

Insight of the Day

When the market gets too focused on the big popular stocks, the opportunity in the lesser-known ones increase.

As the valuations of the biggest stocks increase – so too does their share of investor attention.

Paradoxically, this actually leads to more potential in the smaller lesser-known stocks.

The problem is, of course, separating the wheat from the chaff when it comes to stocks barely anyone has heard about.

Because while some of these stocks will shoot up far above the market, others will go nowhere.

That’s why one of my most effective strategies is to follow the trail of the corporate insiders…

Because as high-ranking executives, they already know everything there is to know about their own companies (far more than any Wall Street analyst)

And thanks to an SEC loophole, they’re legally allowed to trade their own company’s stock.

Yes, it’s unfair. But since it’s not going to change anytime soon – we might as well take advantage of it.

That’s why in just a few hours at 11 a.m. Eastern later today…

I’m going LIVE for a masterclass that will show you exactly how to “piggyback” the best of these insider trades.

After my masterclass later, you’ll know:

  • How to access the database containing the records of all these insider trades…
  • The key mistakes people make when following these insiders…
  • And the 3 counterintuitive insider buying signals you must know about.

So, if you haven’t done so yet, make sure you click here to guarantee your spot for my live masterclass later…

And I’ll see you at 11 a.m. Eastern today (try to join the live room earlier if you can).

My team will shoot you the login details shortly, so watch out for that.

Embrace the surge,

Ross Givens
Editor, Stock Surge Daily

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Ross Givens
Ross Givens

I bought my first stock when I was 12 years old. It was Microsoft. I’ve been a registered financial advisor. I’ve worked as a stock broker. I ran a managed fund. I was a Vice President at JP Morgan with Series 7, Series 66 and Series 3 securities licenses. I’ve been featured on Fox Business, CNBC, Bloomberg, and a bunch of other networks. The only thing I enjoy more than making money, is helping YOU make money.

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