This week, Zacks Equity Strategist Mayur Thaker, CFA discusses:

• Current market valuation and whether we may be in a bubble. For this analysis, Mayur uses Zacks Research System (ZRS) to get a number of perspectives on current market expectations and whether it may be overvalued.

• First, he looks at standard market metrics including P/E F12M, Price/Free Cash Flow, EBIT Margin, and Shiller P/E. By these standards, Mayur believes the market, while high, is not in the bubble territory we saw in 2000.

• The story gets more complicated when these multiples are compared to the cost of capital In this analysis, Mayur shows that stocks are very expensive relative to 10-year Treasury yields, and that growth expectations are quite high. Watch this week’s video to learn whether Mayur considers the market to be in a bubble—and how he believes investors should position their portfolios.