Chart Of The Day: This Stock Market Valuation Indicator Is Again Flashing Bright Red

Author of "Money Cycles" • Jan 20, 2017 at 9:30 AM EST

This stock market valuation indicator suggests future U.S. stock market returns could be lackluster.

This simple stock market valuation indicator, which compares U.S. stock market prices to the money supply and a leading stock market indicator, is now once again above the 95th percentile. If 2000 and 2007 is any guide, this is bad news for future U.S. stock market returns.