What do the latest GDP numbers tell us?

The GDP numbers came out this week and there was 2.4% growth yoy:
http://www.reuters.com/article/2013/05/30/us-usa-economy-idUSBRE94T0HI20130530

So what does this mean to your equity positioning?

The following chart is used to give a valuation on the stock market and gives you the tool to position yourself. It is based on the total stock index (DWCF) divided by the GNP.

The latest data says that GNP was 16.236 trillion in the first quarter of 2013.

Table 1: GDP and GNP

If we look at the Total Stock Market Index (DWCF), we have 17015.

Now divide 17015 by 16236 and we get: 1.05.

105% is modestly overvalued according to the Stock Valuation Table.

Stock Valuation Table

So I wouldn't buy equities at this stage.