![](https://i.imgur.com/CLvY2jA.png")
12-05-2022, 01:43 PM
It has gone back to lows of 11years ago.
What does this tell you?
It is at below level as Euro debt crisis, below the 2016 China stock market collapse, it has fallen back to near lows of covid crisis.
Most of the blue chip stocks have characteristics of very slow change and immunity to external shock.
The valuation swing from 1.3x book to 0.7x book value.
Basically it can be used as a sentiment indicator because the underlying don't change only how much market is willing to pay.
When it swings to extreme ends it tells us bottoms and tops of investor sentiment.
It tells us now investors are extremely bearish and willing to sell stocks lower price than warranted.
![[Image: AuoEmdr.jpg]](https://i.imgur.com/AuoEmdr.jpg)
What does this tell you?
It is at below level as Euro debt crisis, below the 2016 China stock market collapse, it has fallen back to near lows of covid crisis.
Most of the blue chip stocks have characteristics of very slow change and immunity to external shock.
The valuation swing from 1.3x book to 0.7x book value.
Basically it can be used as a sentiment indicator because the underlying don't change only how much market is willing to pay.
When it swings to extreme ends it tells us bottoms and tops of investor sentiment.
It tells us now investors are extremely bearish and willing to sell stocks lower price than warranted.
I, being poor, have only my dreams; I have spread my dreams under your feet; Tread softly because you tread on my dreams.
