The number of warnings about overvalued markets seems to be quickly ratcheting upward and no wonder.

Stocks in the U.S. closed their best August since 2000, with the S&P 500 up 3.77% for the month. And with a 1.92% return for the TSX during that time, the rally has left equity valuations on both sides of the border sitting at multi-year highs.

The S&P 500 currently has a price-earnings ratio of 18.04, while the S&P/TSX Composite Index is at an even pricier 20.05, both higher than the long-term average for their respective indexes.

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  1. There are always great stocks out there if one is willing to do the work and research through and through to make sure they are worth your time.

    When i first started it was tough because i wanted to just make a profit and get out. But bit by bit i learned more and it intrigued me so much i entered the industry full time.

  2. Wow, so S&P is up nearly 4% for the month? 😀 Now i regret pulling my holding so quickly. 🙁

  3. For the most part i agree with what the article is saying that when you look at the big picture things aren’t that expensive. People are just getting greedy and want to make every last cent in gains. Long term is the key people! 🙂

  4. This year will continue to be a great year. If you are hording and keeping your money in a savings account then bad idea. Get out there. It’s a bull market. Sure, eventually the markets will reverse but better to make a dime right now and watch the trends to know when to remove liquidity from the market.

  5. So what are the bargains. Save me time reading OP! (666)

  6. @jorge, yes there are plenty such as money market funds or just a funds that focus on government bonds. But realize because they are safer your ROI will be lower.

    If you’re young though you should consider being more adventurous with your money.

  7. My issue is i am risk adverse and so would prefer more safe investing like GIC. Are there very safe stock investments that i am assured my principal and a modest return?

  8. The best approach is to still go into Mutual Funds which have a collection of stocks under one roof and because the tend to be mixed (diversity) it is usually safe. I’ve been doing this approach for years. Worked out great for me.

  9. Hey there are always penny stocks! :mrgreen:

  10. TSX is up more than 1.92% return. Not sure where the article got its figure. I calculate it is a little over 2%. Anyone know how they calculated this (in the piece)?

  11. Help! What are the best books for newbies to learn all about stock markets?

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