Often, the trend is only broken for a day or two and the market resumes its major trend. So much for what we might call short-term fluctuations. The picture grows a bit darker when major trend reversals seem overdue or imminent. Previously mentioned is the slight and shrinking yield percentage. At least on this score I am not bothered so much because I prefer corporations that don't pay out after-tax income as dividends, but rather use the money for corporate improvement and growth.
Capital gains are so much more rewarding than dividends.
In the cases of price to earnings, sales and book values, l am concerned. Consider our Currently Recommended Stocks. Between high flyers and conservative valuations, we might as well be living in different worlds. Competition and new technology are sure to make some of today's hot companies footnotes in history. Even good companies that might have survived and prospered will make future blunders that will leave them in the dust.