Overvalued & Underbought

With all the bad news that has been dumped upon the economy for some reason the stock market is going up. Why?

The SEC (Securities and Exchange Commission) has just set up new guidelines for core earnings. No more proforma computations. You know what proforma means - the company CEO or Treasurer waves his magic wand and says this is what I expect to appear as soon as I let the genii out of the bottle. And pigs can fly. These imaginary numbers may give his company a Price/Earnings ration of 20 which is pretty good by today's standards.

Now those mean guys in Washington have said you must reevaluate your earnings but this time figure in your stock options, pension costs and any restructuring charges. Holy Cow, that makes the P/E ratio 37. And that ain't no bargain when you are buying stock. The 100 year average has run about a 14 P/E. If the company has not been paying any dividends then this is a stock that must be suspect for any long term holding.

Because of these new guidelines the entire S&P Index P/E has gone from a 33 to 49. That is much better than it was in January 2002 when it reached 69. This number makes the entire market overvalued and still leaves me with the question of how can the market advance using these high P/Es?

There are a couple of answers and neither may be the right one.

The market has become severely oversold. The bear people have been riding it down until the news media finally recognized we have a long-term bear market. There have become too many traders who think there is no bottom and are willing to sell anything and everything. Enter the trading bargain hunters. It will now be the bears turn to be punished.

It takes money to put the market up. Where is that coming from? Our white knight, Sir Greenspan, has come in with his bags of money this past week. Look past our borders and you will see stock exchanges in every major country in the world that look sicker than ours. Foreign investors want a new home for their money and it seems the U.S. market looks darn good. As that money has started buying you may begin to see pension plan and mutual fund managers coming into the market.

The talking heads on TV and radio will give many other reasons that can be fueling the market advance and they may also be correct. Our market may be overvalued as we see it, but to others it looks like a bargain. Money is always looking for the greatest return and with wire transfers billions of dollars can and does move in a matter of hours. Oversold to the foreign market traders means underbought. It seems they have put on their buying clothes and want a piece of the action as our market is headed up - at least for a while.

Al Thomas' best selling book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter to receive his market letter for 3 months at www.mutualfundmagic.com to discover why he's the man that Wall Street does not want you to know.

premium house cleaning Highland Park ..

In The News:

A New Jersey teenager filed a major lawsuit against AI/Robotics Venture Strategy 3 Ltd. over ClothOff, an AI tool that created fake nude images from her social media photos.

Microsoft reports Storm-2657 cybercriminals sent phishing emails to 6,000 addresses at 25 universities to steal payroll credentials and redirect funds.

Astronomers have discovered asteroid 2025 SC79, a skyscraper-sized space rock orbiting the sun in just 128 days. the second-fastest known.

The Fox News AI Newsletter delivers the latest developments form the world of artificial intelligence, including the technology's challenges and opportunities.

A cyberattack on SimonMed Imaging exposed personal information of 1.2 million patients, including medical records, financial details and identity papers.

Spotify's managed accounts for kids under 13 now available in at least seven countries, allowing parents to filter and block explicit content and songs.

Friendly text conversations about BBQs and social events can lead to WEEX gold trading scams that target older adults with fake investment opportunities.

California company Skyeports creates self-healing glass spheres from Moon regolith that generate solar power and support plant growth for sustainable lunar living.

Cleafy researchers discover fake VPN streaming app Mobdro Pro that installs Klopatra banking Trojan, giving attackers full control over Android devices.

Police departments across the U.S. and Canada are adopting virtual reality training to better prepare officers for high-pressure, real-world situations.

House Bill 469 would prevent AI systems from owning property, serving as executives, or gaining legal personhood in Ohio under Representative Thaddeus Claggett's proposal.

Public voter records expose retirees' personal details to election scammers who create targeted cons using names, addresses, and voting history data.

Instead of fearing what comes next with artificial intelligence, think outside the box. Here are high-earning AI jobs that don't require a computer science degree.

OpenAI CEO Sam Altman says polite words like "please" and "thank you" cost millions annually, while direct prompts may improve ChatGPT accuracy by several points.

Chattee Chat and GiMe Chat exposed intimate conversations and photos, revealing users spent up to $18,000 on AI companions before the breach.

New Instagram parental controls allow families to manage teen screen time and content limits through the Family Center with stricter safety settings.

Third-party security breach at Discord exposes sensitive user information including government IDs, highlighting cybersecurity risks from external service providers.

Survey of 1,000 students shows teens using AI for personal relationships while two-thirds of parents remain unaware of their children's AI usage.

Cybersecurity experts warn about a ShadowLeak vulnerability that weaponized ChatGPT's Deep Research agent to steal personal data from Gmail accounts through hidden commands.

Tesla's Full Self-Driving system faces federal investigation following 58 reports of crashes, with six vehicles running red lights before colliding with other cars.

The Fox News AI Newsletter brings you the latest developments on artificial intelligence, with news on OpenAI moving to soon allow erotica for adult users.

Eric Schmidt alerts that hackers can reverse-engineer AI models to bypass safety measures, citing examples like the jailbroken ChatGPT variant called DAN.

Cybercriminals exploit Microsoft Teams through impersonation, malicious links and fake profiles to gather intel and deliver ransomware to personal and work devices.

Google, Dior, Allianz and dozens of other companies lost sensitive customer data in Salesforce-related breaches affecting millions of records across multiple sectors.

Apple launches iOS 26 with new Preview app that combines document editing, PDF annotation and scanning features into one streamlined iPhone experience.

Overvalued & Underbought

Stocks & Mutual Fund