With the market having reached new highs recently, and then tumbling a bit, many investors have begun worrying that this is the beginning of the next major market pullback. In this video, Motley Fool financial analyst Matt Koppenheffer discusses why runaway valuation levels might be a more important indicator that a pullback is about to happen. He compares valuations from companies in the S&P 500 today, vs. the valuations those companies had in 2006 leading up to the market meltdown in 2008. Matt thinks banks in particular look undervalued at the moment, and he takes a look at three banks with especially low price to tangible book value ratios. 


Matt Koppenheffer owns shares of Bank of America. The Motley Fool owns shares of Bank of America, General Electric, and Oracle. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.