Market analyst and adviser Doug Short noted last week that the market SPX +0.09% is overvalued in the range of 51% to 85% when measured by price-to-earnings ratios and the lesser known Q ratio (total price of the market divided by replacement cost). Also last week, Goldman Sachs analysts published a report that concluded: “In just one quarter, profit margins dropped from 10% to 8.7% of” gross national product.
