Stock Markets Are Doing Something They've Only Done 4 Times Since 1870 -- Should You Be Worried?

Expert investors like Warren Buffett are having trouble finding stock market bargains. Just take a look at Buffett's growing cash hoard. His holding company, Berkshire Hathaway, recently reported a $381 billion cash pile -- the most in its history. Want to know why Buffett is growing cautious? One underrated stock market indicator explains everything.You can calculate the price-to-earnings ratio for nearly every stock. This metric gives investors a great idea of how "expensive" a company's shares are. It's also possible to calculate the price-to-earnings ratio for a market index like the S&P 500 (SNPINDEX: ^GSPC). This gives you a good idea of how high or low stock markets in general are being valued.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool