By Richard Russell in Dow Theory Letters:

The S&P is currently selling at 22.31 times trailing earnings. Just as important, the dividend yield on the S&P is a mini 1.90%.

Based on these statistics, I'm saying that the stock market is severely overvalued. The stock market is not priced to produce profits in coming years.

Actually, the market is priced to produce losses over the years, particularly if you factor in inflation, commissions, dangerously low dividends and rising taxes

My choice is to sit with gold and cash.

Crux Note: Learn more about the excellent Dow Theory Letters here.

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