Investors Are Paying Triple for Stocks Today Stocks are now the most expensive they've ever been... That's according to the price-to-sales (P/S) ratio of the S&P 500 Index. The P/S ratio is calculated by taking a company's market capitalization and dividing it by its trailing-12-month ("TTM") sales. In other words, the number tells us how much investors are paying for every dollar a company earns in revenue. During the dot-com boom in the late 1990s and early 2000s, the S&P 500's P/S ratio surpassed 2.0 for the first time in history. That meant folks were paying more than $2 for every $1 companies were bringing in. Less than a decade later, the opposite happened... The great financial crisis drove the P/S ratio down below 1.0. Investors who bought the index at the time got a great deal and managed to scoop up fantastic companies for less than they were worth. But then the pendulum swung back. After slowly creeping higher for a decade, the P/S ratio soared thanks to a pandemic-induced market frenzy. Investors – bored at home and armed with a stimulus check from the government – piled into stocks. And for a single month in 2021, the P/S ratio rose above 3.0 for the first time ever. That leads us to where we are today... The P/S ratio is at a new all-time high well above 3.0. Take a look... As of December 2025 (the most recent monthly reading), the P/S ratio was sitting around 3.4. Since then, the number has risen even higher, to about 3.5. That means investors are paying nearly $3.50 for every $1 of sales an S&P 500 company achieves. Everyone knows the market is expensive right now, but being able to put a quantifiable number on it and determine that investors are paying more than triple what stocks are worth is an eye-opener. It's even more egregious when you consider the fact that the S&P 500's long-term average P/S ratio is 1.8. However, just because this ratio is at an all-time high today doesn't mean there aren't still fantastic stocks out there worth buying. It all comes down to being able to interpret company data and larger macroeconomic trends to make the correct investment decisions. This is where our team of experts at The Total Portfolio can help... Each month, I and the rest of the team help you navigate the ever-changing market and tell you exactly what you should buy, how much you should invest, what percentage of your portfolio you should allocate to each position, and when you should sell. We give you a clear game plan, take the guesswork out of the equation, and help reduce your risk – even in uncertain times like today. Recently, five of us from The Total Portfolio sat down on camera and gave you a peek behind the curtain of one of our board meetings. We talked about hot topics such as AI stocks, precious metals, and whether we're bullish or bearish right now. Plus, each of our experts (myself included) gave away our top stock ideas for 2026. You can hear all of this for free right here. We're probably experiencing the most extreme market that I've ever seen in my life. So it's more important than ever to protect your wealth. Don't delay. Here's to our health, wealth, and a great retirement, Dr. David Eifrig and the Health & Wealth Bulletin Research Team
January 31, 2026 Reader question of the week... Q: Perhaps this is academic for me, since today is my 75th birthday, but I am wondering what Doc thinks of Cologuard. My wife is a neurologist, and neither of us have ever had a colonoscopy. She doesn't want either of us undergoing a procedure requiring a general anesthetic unless absolutely necessary, so we have opted for regular Cologuard submissions. Neither of us has a history of colon cancer in our families. – S.R. A: Thanks for your question, S.R. We understand your wife's concerns, as potential complications and side effects from general anesthesia do increase with age. For those not familiar, Cologuard is an at-home test for blood in your stool that could come from a polyp growth or other cancer cells. Organizations like the American Cancer Society and U.S. Preventive Services Task Force ("USPSTF") – an independent panel of national experts – recommend people aged 45 to 75 be screened for colon cancer. The USPSTF lists stool-based tests, like Cologuard, as an approved screening strategy for colorectal cancer. Folks can do this test at home just once every three years. Since they're much less invasive, they hold a lot of promise for those who don't have high-risk factors for colorectal cancer. However, there's some concern over a higher false-positive rate than you would see with a traditional colonoscopy. Traditional colonoscopies or sigmoidoscopies require unpleasant preparation drinks and an actual surgical procedure to insert a camera into your body. While it can be rare, that could mean risks of perforation and problems with anesthesia. However, people with a higher risk of colorectal cancer – like those with a family history or inflammatory bowel disease – still need the higher degree of certainty that a traditional colonoscopy screening provides. Folks should talk to their doctor to see if they're eligible for a take-home version. Most insurance companies should cover the cost, including Medicare, but call first to make sure. Keep sending your questions, comments, and suggestions our way. We read every e-mail... feedback@healthandwealthbulletin.com.  | This Is Why You Don't Panic-Sell Investing is a "loser's game," so you need to keep your emotions in check... |  | Three Winter Dangers That Seniors Shouldn't Overlook Some of winter's biggest dangers can originate right inside your house... |  | How to Beat the Market – With Less Volatility Hedge funds now have a long track record of doing worse than the market... |  | The One Item You Need to Survive the Winter Freeze Don't let the chilly winter air defeat your greatest protector against infection... |  | Don't Ditch the Market When your doctors, co-workers, and neighbors start to brag about their investments, it's a huge red flag... |
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