overvalue

If global equities are overvalued and due a correction, investors do not need a good reason to start selling, just a popular one.

It's hard to say, because it's hard to know just how much homes were overvalued at the peak of the bubble.

But the British pound, which was more than 25% overvalued a year ago, is now near fair value.

And those countries, notably Brazil, that have wound up holding the baby of an overvalued currency, are trying to restrict inflows.

For example, U. S. Treasurys would seem to be overvalued given the long-term problems in the U. S. budget and with the dollar.

It was near the height of the second global bubble: Mr. Grantham argued everything was overvalued and was bound to crash, while Mr.

Mr. Lipsky said the IMF didn't consider the yen overvalued, at least when looking over a three-to-five year time frame.

In contrast to the Pru, Aviva has ruled itself out of the race for parts of AIG, declaring any assets would be "grossly overvalued" .

Mr Fan said the real problem the world faced today was an overvalued dollar, not only against the renminbi but against all major currencies.

The euro zone risks getting caught up in this process with an overvalued exchange rate at the wrong time.

Nobody even knows what gold is worth, so it's impossible to say with any confidence that it's overvalued (or undervalued, for that matter).

Mao Nan, analyst with Orient Securities, agreed that the company's shares had been quickly overvalued.

In recent weeks, there have been repeated government warnings that most shares are overvalued and a bubble could be in the making.

A Chinese ETF Anti-Bubble If you think the Chinese stock market is overvalued, ProFunds Group is with you.

Our rough-and-ready Big Mac index calculated in July that the franc was as much as 98% overvalued against the dollar.

During the 1920s, the British Pound was overvalued and was used by smaller countries as a reserve currency.

The thinking was that shorts would bring overvalued stocks back to more realistic levels.

IN EARLY 2000, just as the dotcom bubble was at its height, two books appeared that argued the stockmarket was overvalued.

He is one of a stubborn bunch of pessimists who believe that share prices are overvalued and the economic recovery is built on sand.

At least by this one measure, stocks are no longer blatantly overvalued.

By this measure Australian property is the most overvalued of any of the 20 countries we track.

A year ago the euro was overvalued by 29% on the burger benchmark; that figure is now down to 16%.

All are more overvalued against the dollar than a year ago.

In a bull market, what looks overvalued today may look like a bargain the next month.

Well, currencies float. They are bound to be sometimes overvalued and sometimes undervalued.

Policymakers also fear that this flood of capital could lead to asset-price bubbles and overvalued currencies.

If valuations rise, how do you know whether the market is overvalued or that the trend rate has accelerated?

A year ago the pound was overvalued by more than a quarter on the Big Mac gauge.

The common theme was that markets had grown wildly overvalued.

McCormick said a slight bias toward risk should boost these currencies in the short term, even if they look overvalued in the long run.

To a large extent, China's stock market is a merry-go-round, rotating overvalued claims on state assets between different arms of the state.

The big event has been elsewhere: the great mistake, Asian policymakers concluded, was not pegged, but overvalued, exchange rates.

Investors won't know whether these companies are overvalued until 2012, he said.

Similarly, today the dollar is overvalued and used as the reserve currency of the world. The U.

By contrast, government bonds look extremely overvalued and the outlook for equities is more mixed, following a strong run in September.

He declined to say whether share prices were overvalued, declaring the OECD "agnostic" on the issue.

overvalued given a recent run-up in share prices.

If the stock is under priced , buy it back with excess cash; if it's overvalued, don't buy a single share.

Effects may be amplified by political uncertainty, overvalued housing markets and explosive credit expansion.

"You can't tell when a market is overvalued, and you can't fight market forces . . . we never tried to rein in stock prices again. "

In slow-growing economies with overvalued real exchange rates, these spreads begin to be dangerous.

Overvalued prices and large debts leave households vulnerable to a rise in unemployment or higher mortgage rates.

Goldman Sachs reckons that the rupee is one of the few Asian currencies that is overvalued against the dollar.

It estimates that in 2004 the average property in the euro area was overvalued by at least 15%, and homes in Spain and France by almost 30%.

The eurozone, the UK, Canada and Australia among others believe that their exchange rates are already substantially overvalued.

The Australian dollar, the world's fifth most traded currency is up to 15% overvalued, according to the International Monetary Fund.

For most of the time I have been writing for Industry Review, I have offered the prospect of imminent relief from overvalued pound.

When investors are greedy and require too much real return on equity (more than ten percent), this signals markets are overvalued.

The Swiss franc, like the yen a source of low-yielding funds for foreign-exchange punters , is 53% overvalued.

Among the other highlights from the survey: Money managers continue to shun gold, which they deem 'overvalued. '

The other is a "bubble economy" , characterised by excessive lending, overinvestment and overvalued share and house prices.

Of all the unknown always have too overvalued ideas, until one day, gradually deviated from the original track is not knowing.

Yet despite the bullish outlook on earnings, emerging market stocks still appear overvalued on a price-to-earnings basis.

CONSIDER these two statements: the American stockmarket was overvalued in 2000; company profits are high relative to economic output.

For much of this period, China's exchange rate was seen as overvalued not undervalued.

The most overvalued currencies are found on the rich fringes of the European Union: in Iceland, Norway and Switzerland.

While many overseas analysts believe the mainland market is overvalued, some Chinese analysts are more relaxed about the situation.

Panasonic believes that the huge chunk of unconverted preferred shares means that Sanyo is overvalued.

Hardly: I would have to know what something was worth before I could conclude it was overvalued.

But his bedrock -- counterintuitive -- reason copper is overvalued: China's blistering demand.

He prefers Russia, Taiwan and Turkey, which he says are not overvalued.

In contrast, the currencies of Switzerland and Norway appear to be overvalued by around 100%.

There are no reliable models to determine if it is "overvalued. "

Residential real estate appears to be even more overvalued.

Investors should also treat emerging market debt with caution, taking care to avoid overvalued assets.

Overvalued reason has this in common with political absolutism: under its dominion the individual is pauperized.

In trade-weighted terms the currency is not overvalued by historical standards (see chart).

No matter how overvalued a stock, an analyst can always be found to say it's cheap compared to some other (even more overvalued) stock.

At least house prices are still falling in the euro area's overvalued markets, such as France, Spain and Ireland.

Exporters had seen the overvalued euro as a heavy cross to bear.

Although there are howls of protest from Japanese exporters, currency strategists say the yen is not significantly overvalued.

Indeed, the euro is suffering from a surfeit of credibility since, on many gauges, it is overvalued against the dollar.

Comparing the PPP with the actual rate is one test of whether a currency is undervalued or overvalued.

On the first, estimates of the extent of undervaluation vary hugely: some even argue the renminbi is overvalued.

Again, after being overvalued for more than a decade, stocks now appear to be at about fair value according to q.

Indeed, in the first four of those countries housing looks more overvalued than it was in America at the peak of its bubble.

"I don't think the market is overvalued, " said Marc Pado, U. S. market strategist at Cantor Fitzgerald & Co. in San Francisco.

At the time, the KIA found Chinese property overvalued.

Finally, big losses may yet emerge elsewhere, not least in other countries' overvalued housing markets.

Since Chevron, in theory, is overvalued relative to Exxon, the trader might turn a profit if Chevron fell harder than Exxon.

Overvalued currencies also mean exporters lose their edge because their goods are costlier abroad.

It was banks that were on the wrong planet, with accounts that vastly overvalued assets.

Similarly those who buy an overvalued asset with borrowed money have not made themselves richer but poorer.

The second question is whether home prices in markets that are still overvalued are likely to fall.

Despite an overvalued Kenyan shilling, tourism and agriculture are booming.

In relative terms, the market does not look overvalued either, on 15 times this year's estimated earnings.

The budget is in deficit, the current account is near zero, and the peso is overvalued.

Bankers stuffed their clients with overvalued securities.

House prices look overvalued on The Economist's price-to-rents ratio, which stands roughly 20% above its long-run average (see chart).

Their wages, even at the grossly overvalued official exchange rate, are worth around $25 a day.

House prices look overvalued on The Economist's price-to-rents ratio, which stands roughly 20% above its long-run average (see chart).

Their wages, even at the grossly overvalued official exchange rate, are worth around $25 a day.

If the government does not act soon to tighten liquidity, share and house prices will become seriously overvalued.

One exception is the South Korean won, which is exactly at its PPP, implying that it is overvalued against other emerging-market currencies.

Rich, or overvalued bonds, have lower yields than bonds with similar terms and credit ratings.

Despite attempts by the Swiss central bank to stem the appreciation, the Swiss franc is overvalued by 68%.

How can you tell when a market has reached an undervalued or overvalued level, a zone for buying or selling?

Against other gauges, however, the greenback may still be overvalued .

As fattening trade surpluses and historical comparisons show, the real exchange rate is hardly overvalued.

London is Britain's most overvalued region, says Mr Diggle. It cannot defy gravity forever.

London is Britain's most overvalued region, says Mr Diggle. It cannot defy gravity forever.

Like Mr. Grantham, Mr. Catalano now thinks stocks are slightly overvalued.

Britain's exports struggled against an overvalued currency.

But the Big Mac index suggested that the euro was already overvalued.

But rising leverage eventually bred easy credit and overvalued homes.

When the bubble broke, the excessively leveraged loans made on the basis of overvalued assets went sour.

In other words, the yuan is the most undervalued currency, the Swiss franc the most overvalued.

One line of thinking is that the ability to short overvalued stocks will temper the market's spectacular booms (and subsequent busts).

They were about 45% to 50% overvalued by the same measure during the boom.

Few markets have grown as quickly as China's A-share market - many fear to overvalued levels.

Few markets have grown as quickly as China's A-share market - many fear to overvalued levels.

So it is a self-defeating strategy as long as the currency remains overvalued.

In 1995 grumbling about an overvalued franc helped Jacques Chirac win the presidential election in France.

But then there are negative reasons. Bonds looked seriously overvalued. Yields were desperately low.

The real may be overvalued, but with commodity prices as high as they are, it will never be cheap.

At the peak of the bubble, they were 40% overvalued.

Especially 2007 later, RMB real exchange rate has a little overvalued.

Finally, while CEA is almost certainly overvalued, so are its peers.

It started with stocks more overvalued than ever before - and the sell-off stopped before a return to normal valuations.

Prices are hovering above the EMA - an overvalued level.

Prices are hovering above the EMA - an overvalued level.

One argument is that Germany entered monetary union at an overvalued exchange rate and has since improved its relative competitiveness.

U. S. manufacturers are thus penalized by the overvalued dollar and so must reduce production and fire American workers.

On the one hand, an overvalued currency would make the transition from an export-led strategy abrupt and painful.

One explanation is that investors pile into the stock markets of high-growth countries until they become overvalued.

As a result, many property markets are still looking uncomfortably overvalued.

These variables compare observed exchange rates to PPP ones, and exceed 100 when the currency is overvalued.

A main reason for the banks' problems is that they have lent money against: depositors' hugely overvalued stock holdings and property.

Even taking scarcity into account, the analysts believe that houses are overvalued by some 20%(4).

When the DR3 goes from overvalued to neutral equities should underperform treasury bills or bonds or gold.

But, he says, gold has been as much as 200% overvalued in previous periods of monetary expansion.

They may have been more overvalued to startwith.

That in turn would allow the real, which is overvalued, to weaken, helping manufacturers cope with competition from China.

Even technology stocks were 'not overvalued' based on standard measures, she insisted.

The most overvalued currency against the dollar is the Norwegian kroner, which is 96% above its PPP rate.

Prices in China are not that high relative to rents: our index suggests that homes are overvalued by less than 13%.

By that measure, Mr Lasserre calculates, oil is overvalued by 50%, and zinc and copper by almost 40%.

WHERE are house prices most overvalued?

The bad news is that there will be no cheap money for supporting overvalued asset prices any more.

In mid-September both measures concluded that the US stock market was overvalued by some 35 to 40 per cent.

The Aussie is the third most overvalued currency in purchasing power parity terms.

Write-Down Reducing the book value of an asset because it is overvalued compared to market values.

After an 86 percent gain in 21 months the market looks overbought , overextended and overvalued .

The US dollar, for example, is widely believed to be overvalued, especially in relation to the currencies of Asian nations.

When they say there's a tech bubble, I think there's an emerging fear that some deals are being overvalued in some sectors.

Stocks and properties in China may be 100 per cent overvalued. Only two decades of relatively high inflation can justify their prices.

This implies that the euro's PPP is exactly $1, so at its current rate of $1. 10 the euro is 10% overvalued.

I offered to go to work at Graham-Newman for nothing after I took Ben Graham's class, but he turned me down as overvalued.

The hapless bond fund manager then has to go out and 'put that money to work, ' even in an overvalued market.

Burgernomics suggests that the real is overvalued by 31%.

By all measures the euro's current rate of $1. 34 looks overvalued.

Bah! Overvalued!

The euro is almost 30% overvalued on the burger gauge.

According to investment bank Goldman Sachs, its currency, the real, is the most overvalued major currency in the world.

They may well be totally overvalued at $40.

The yuan isn't overvalued, in my view.

Markets are clearly not overvalued and there are some good opportunities in equities but still we're not paid to take risks.

In Brazil a Big Mac costs the equivalent of $5. 26, implying that the real is now overvalued by 42%.

If anything, the renminbi was slightly overvalued at 8. 27.

Is the peso overvalued in 1994? Why or why not?

To control domestic inflation, the peso is overvalued and the exchange rate pegged to the dollar and floating.

Early last year I wrote that even though prices in Florida and California had collapsed, those markets were still overvalued.

Ireland may look less overvalued than Spain because the available data go back only to 1990 and omit a period of less bouncy markets.

Hong Kong's price rises are the steepest in our index but it is not the most overvalued housing market.

But after years of struggling with an overvalued currency,

Unlike so often in the past, most currencies do not appear to be notably overvalued and hence prone to collapse;

We thought it was a correction of the bubbles of technology stocks, as many people believed they were overvalued;

When the chips are down The latest Big Mac index suggests the euro is still overvalued

In Ireland and Spain home prices are the most overvalued in the zone;