And there certainly have been rumblings in 2018 – not too long ago we had a three day stretch that was called "the tech bloodbath", and during that time Facebook had the worst day for a single company in stock market history.  But we haven't seen the really big "crash" yet.  Many have been waiting for it to happen for several years, and some people out there are convinced that it is never going to come at all.  Of course the truth is that we are in perhaps the largest stock market bubble that our nation has ever seen, and all other large stock market bubbles have always ended with a major price collapse.  So whether it happens immediately or it takes a little while longer, it is inevitable that stock prices will eventually return to their long-term averages.

Doug Ramsey, the chief investment officer at Leuthold Group, is one of those that is sounding the alarm.  Unlike price to earnings ratios, price to sales ratios are very hard to manipulate, and he has pointed out that price to sales ratios are higher than we have ever witnessed before.

In particular, when you look at the median stock price to sales ratio, it is the highest that it has ever been and it is twice as high as it was in February 2000…