. There are only two oversold, technically attractive stocks by Relative Strength Index this week – North West Co. Inc and Canadian Imperial Bank of Canada.Story continues below advertisementNothing makes a case for dividend exchange-traded funds like low interest rates. The yield on the five-year Government of Canada bond slipped below 1.5 per cent in late March, while rates on five-year guaranteed investment certificates ranged from 2.2 to 3.2 per cent.
“Short selling can be like a cat waiting outside a mouse hole – the level of patience is not for everybody,” writes Kathleen Staley in. How true that is these days with the Toronto Stock Exchange up 15 per cent over the past three months and now in the tenth year of an historic bull market? Price-to-earnings, or P/E, is the go-to valuation metric in virtually any stock analysis, but here’s where it gets interesting:One doesn’t have to look far to see this: The S&P 500 trailing P/E is currently 18.7 versus a long-term average of 16.7, according to Bloomberg. This signals a possibly overvalued market, in other words, that the chances of a decline are high.