Dividends Anonymous

Four Commonsense Clues to a Genuine Market Bottom

Good article. The only problem with P/B is that if you're not sure what the liabilities are actually worth or if the company has off balance sheet liabilities not publicly disclosed than you can get into some serious trouble. Many sectors have been trading below P/B or NAV for quite some time now and while the broader market might be an indicator I think the S&P with strong financial weightings skews that result somewhat. I would caution against P/B as a valuation for a market bottom and continue to look to equities who continue to increase their book value by meaningful growth rather than growing the business through equity or debt.