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Massachusetts seems set to pass a ratio maximum, with Illinois and another dozen states right behind.
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The result won't always conform with a sense of how close the matches were: A winner of a five-setter in which he dropped two sets in tiebreakers and won the other three sets 6-0 probably would have a higher dominance ratio than a straight-sets win in which each set was decided by a tiebreaker.
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Over the years, I have found that even a short interest ratio as low as 5, when combined with a positive technical pattern, can set up a good trading opportunity.
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Finally, I set the valuation limits at a maximum price-to-book ratio of 4.0 and a maximum price-earnings ratio of 25.0.
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The PBOC also raised reserve requirements on banks six times in 2010, obliging them to set aside 18.5% of their deposits, a record ratio.
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To be fair, Hulbert does note that he was looking at a small sample size and that there have been instances where the CAPE ratio has stayed at high levels before a bear market set in.
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The Vickers Commission, set up the chancellor, recommended that there should be a ratio of 4.06% of pure equity capital to gross loans and investments, as what is known as a "backstop leverage cap", for the biggest banks.
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It also set off a decadelong decline in reserves, which left banks with a record low reserve-to-loan ratio of 1.21% at the end of 2006--just in time for the housing bust to hit.
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