This is a composite of the “price-to-something” metrics for global equities, including the ratio of price to trailing earnings, projected earnings, sales, cash flow and other metrics. Bad Value (a low percentile on this dashboard) is not a reliable signal to exit the stock market, on its own. But the great bear markets in the past usually began when Value was stretched and then economic growth faltered.
This is a measure of how much equity prices have changed over the prior year. A higher increase in stock prices leads to a higher percentile on our chart. Rising prices are an indication of positive sentiment among investors.
The average percentile of the five dashboard items is a more reliable downside risk metric than any single dashboard item. A reading below 35% indicates heightened downside risk.