Stocks at Fair Value: Will They Overshoot Now? [View article]
"...the cyclically adjusted price-earnings ratio...has dropped to its long-run average."
The thing about an AVERAGE is that you have to spend as much time BELOW (not just at) the average as above. Going below the average isn't overshooting; it's required in order to make that the average.
Otherwise, it would be like Lake Wobegon, where all the children are above average, or the surveys that find that 80% of drivers think their skills are above average.
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"...the cyclically adjusted price-earnings ratio...has dropped to its long-run average."
Nov 12 01:08 am
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All Comments by Kunst »Stocks at Fair Value: Will They Overshoot Now? [View article]
The thing about an AVERAGE is that you have to spend as much time BELOW (not just at) the average as above. Going below the average isn't overshooting; it's required in order to make that the average.
Otherwise, it would be like Lake Wobegon, where all the children are above average, or the surveys that find that 80% of drivers think their skills are above average.