By Porter Stansberry in DailyWealth:

The world's best investors don't see the market the way you do.

And I mean that literally... They look at the market through different lenses.

Most investors know how to value equities using various valuation ratios - like the price-to-earnings ratio, the price-to-book ratio, or dividend yields. These valuation studies are important when you're buying individual stocks. And they can give you some idea of whether or not the market as a whole is attractive.

But... there are much better ways to see valuation in the markets.

For example, here's a chart of the S&P 500 going back to 1975. This is the way you probably look at the market today. And when you look at the market this way, it appears pretty expensive. Stocks have been mostly going up for a long time.

The recent big selloffs didn't bring the S&P 500 index back down all that much... or so it seems when you look at a plain chart...

Read full article (with chart)...

More from Porter Stansberry:

Stansberry: The worst trade in the history of the U.S.

Why inflation is sure to explode in the next few years...

Porter Stansberry explains the forces behind the current rally