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Strategies & Market Trends : ajtj's Post-Lobotomy Market Charts and Thoughts -- Ignore unavailable to you. Want to Upgrade?


To: Sun Tzu who wrote (52891)2/25/2022 4:19:11 PM
From: Qone04 Recommendations

Recommended By
ajtj99
Jacob Snyder
Lou Weed
towerdog

  Read Replies (3) | Respond to of 97601
 
The market is never fairly valued, by any metric. It's a pendulum that swings back and forth, creating patterns along the way.

Like this.




To: Sun Tzu who wrote (52891)2/25/2022 5:00:18 PM
From: ajtj99  Respond to of 97601
 
I'm not saying it's a rule to use for the basis of investing. It's a rule to point when the market is overvalued. It does not mean one should give up on momentum and T/A.

It is probably best used to identify value at lows. At the March 2020 lows, the S&P was valued at 16.5 on the Rule of 20, indicating a valuation reached very few times in the last 20-years.