Highest Percentage of Stocks Trading at Above Average Valuation Levels Since 2007

In understanding that valuations are cyclical and valuation range regimes change over time, we've constructed some charts to compare current valuations with the previous 7 year average (roughly a complete market cycle) to help us gauge the general price level prevailing in the market. What we find is that the percent of stocks that are trading above their previous 7 year average P/S ratio is the highest it's been since 2007 and even higher than it was in 1999. The best buying opportunities occur when only 10-20% of stocks are trading at above average valuation levels, but today nearly 70% of stocks are trading at above average levels. This of course doesn't preclude stocks from advancing significantly from here, but it does mean that finding pockets of value is becoming more and more difficult.