Stocks

It’s been more than 19 months since the last 5% dip in the S&P 500 Index. This is just the sixth time we’ve gone more than a year without a 5% correction.

One of the more popular opinions is that stocks are overbought. The problem is that few experts tell us what overbought means.

Europe’s economy is on a tear. We’ve certainly seen it in our Total Wealth Insider portfolio, where one of our European banking stocks is up nearly 40%.

With one of the hottest sectors in recent years failing to keep pace with the broader markets, it gives us a significant buying opportunity — here’s why.

As this ratio moves lower, it starts to tell us what we can expect from the market — and right now, it’s telling us to expect a pullback.